NOVA Stock Borrowing & Lending
Stock lending and borrowing, also known as securities lending, is a financial mechanism where you allow another party—typically a financial institution—to temporarily borrow stocks that you already own. In return, you receive a fee for this arrangement. Think of it as “renting” out your stocks for institutions or other parties to use. NOVA Stock Borrowing & Lending module supports the broker in lending their own stock and borrowing stock to support their market making operation or to reduce failed settlement. Stock Loan transactions are entered as stand-alone transactions with only Principal trades – between an internal, house book and the market, being supported. The SWIFT messaging for reporting SBL transactions for settlement is highly automated with the settlement revaluation and return all being processed on the back of messages received from Stock exchanges (e.g.: Euroclear UK & Ireland system, CREST).
Features
Benefits
Improve Operational Efficiency
with automated Straight Through Processing and multi tier architecture
Reduce Cost
operate more efficiently, and minimise risk with cloud-hosted infrastructure
Scalable & Future-Ready
with multi tier architecture enabling load balancing and increased security
Lower Security Risks
multi tier architecture that isolates critical data under several encrypted layers
Strong Clearing & settlement
ecosystem with direct interface with all major CSDs across APAC
Improve Compliance
to ever-evolving regulatory requirements across multiple jurisdictions