Absa clients can now automate securities finance trading

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With Absa trading on EquiLend since 1 July, the bank and its clients benefit from the ability to automate securities finance trading with EquiLend counterparties around the globe. Furthermore, global market participants now have unprecedented access to the South African market.

"As EquiLend's global footprint continues to expand, we are constantly aware of our clients' demands to bring the automation and efficiency gains experienced by users of our platform to new markets," Brian Lamb, CEO of EquiLend, says. "We have seen significant interest among domestic market participants in South Africa, keen to elevate their international presence by joining the EquiLend platform. We anticipate considerable growth in this market going forward."

Improved pricing

Francois Henrion, head of Equity Finance within Absa's Prime Services business, says partnering with EquiLend was a natural step for Barclays Africa in becoming the continent's 'Go-To' prime brokerage business. "Our prime brokerage clients benefit from improved pricing and liquidity in their financing portfolios, and as a lending business, we are able to significantly improve our access to, and utilisation of, inventory."

EquiLend anticipates greater activity in the South African securities finance market as the need for an efficient means of sourcing securities to cover failed trades becomes increasingly important with the Johannesburg Stock Exchange moving toward a shorter securities settlement cycle. Moving from the current T+5 to a T+3 cycle has increased demand amongst domestic market participants for securities finance in South Africa.

About 100 principal lenders, agent lenders and broker-dealers in the securities finance markets globally are active on EquiLend and its fixed-income trading counterpart BondLend.