(Reuters) – EquiLend, a fintech on the coronary heart of securities lending on Wall Road, stated on Thursday it has secured a minority funding from an affiliate of U.S. banking big BNY.
The securities lending trade allows traders to borrow and lend shares, bonds and different property to facilitate liquidity administration and buying and selling methods.
Main banks, asset managers and hedge funds depend on securities lending to optimize portfolio returns and meet regulatory capital necessities.
EquiLend is partly owned by a few of Wall Road’s greatest heavyweights, together with Goldman Sachs, BlackRock, JPMorgan Chase and Financial institution of America Merrill Lynch.
BNY, together with eight different main monetary establishments that maintain strategic investments in EquiLend, will advise it on advancing innovation and bettering effectivity within the trade, the fintech stated.
“We’re assured in EquiLend’s central position within the market and plans to additional redefine securities finance with revolutionary market infrastructure,” stated Nehal Udeshi, BNY’s head of securities finance.
The worldwide securities finance trade generated $703 million in income for lenders in February, a report by DataLend, the market knowledge service of EquiLend, confirmed earlier this month.
EquiLend, which was fashioned in 2001 by a consortium of world monetary establishments and went dwell in 2002, offers securities finance know-how and providers.
It counts almost 200 companies as purchasers, together with asset homeowners, company lending banks, broker-dealers and hedge funds.
(Reporting by Manya Saini in Bengaluru; Modifying by Krishna CHandra Eluri)
