EquiLend Exposure

EquiLend Exposure

Increased regulatory reform, combined with the requirement for financial institutions to manage collateral in a much more cost-effective manner, has meant that transparency and optimization of collateral usage is imperative. EquiLend Exposure is uniquely designed not only to help clients maximize their collateral but also streamline and enhance the underlying borrow/ loan settlement process to provide the following:
  • Pending and actual, real-time exposure risk valuations with counterparts
  • Up-to-date transparency on inventory with options to better utilize these positions
  • Link collateral processing directly to borrows/loans to greatly improve settlement rates and reduce latency
  • Control and governance to ensure that the collateral transactions are executed exactly how clients would expect

EquiLend Exposure will be rolled out in three pillars, with iterative releases throughout the year: Exposure Management, Collateral Management, and Inventory Management

  • Exposure management dashboard, providing an instant view of exposure risk with counterparts
  • Calculate actual and forecasted exposure numbers split by counterpart and collateral type
  • Absorb counterparts’ equivalent data and provide real-time reconciliation
  • Direct real-time linkage into Unified Comparison to enable instant resolution of discrepancies
  • Automatic connectivity to collateral modules, including Mark to Market and RQV (Tri-Party Connectivity) screens
  • Automatic connectivity to all tri-party agents, providing straight-through processing (STP)
  • Ability to prioritize collateral requirements, for example, independent pre-pay calculations and agreement
  • Real-time receipt of collateral allocations from tri-party agents
  • All up-to-date data absorbed and displayed on easy-to-view screen

All data will be leveraged from your OneFile submission. Phase 1 is live in production.

  • Digitization of collateral schedules, creating a centralized, transparent repository

  • Attesting the collateral pledged against the collateral schedules

  • Independent pricing of collateral pledged

  • Real-time dashboard of inventory positions

  • Detailed MIS reporting, offering the ability to monitor counterpart performance as well as provide clearer transparency on the costs involved in process management

  • Greater STP on connecting collateral movements and reducing settlement latency, including loan release and return processing

  • Automation and validation of bilateral non-cash transaction process leveraging NGT shared trade tickets

  • AI inventory optimization across tri-party agents

RQV - Auto RQV Calculation and Connectivity With Tri-Party

  • Using client’s data (CEF, CIF, Price and FX), the EquiLend Exposure system will segregate & calculate today’s prepay and RQV numbers
  • System can also calculate the future prepays
  • Clients can reconcile the RQV numbers with counterparty RQV numbers (calculated using counterparty’s OneFile)
  • User can view the breakdown of prepay & RQV numbers based on the escrow accounts created at each tri-party agent
  • User can send today’s prepay number, and once confirmed by tri-party, can send the RQV number to the tri-party agents
  • User can send multiple RQV messages to the tri-party agents from EquiLend Exposure screen
  • Users can edit the RQV if there are any discrepancies
  • Processes the collateral allocation sent by the tri-party agent
  • Users can view the breakdown of collateral allocation by the tri-party agent
  • EquiLend is connected to global platforms BNY Mellon, Euroclear and JP Morgan tri-party agents. Clearstream will be connected later in 2019.