The Web-based platform was designed and built in-house by DrKW and offers a platform for processing trades straight through from beginning to end. The new product is open to approved clients of DrKW, while 180 clients from a wide range of institutions have already expressed interest in the service, according to the firm.
What It Is
Securities lending, as the name suggests, involves the loaning of securities by one portfolio to another for a fee. Many market activities still require the ability to physically deliver securities, most commonly to prevent a failed sale or to facilitate a short sale.
This need is greater for securities that are in short supply, are heavily traded (such as those held by index funds) or are difficult to acquire (such as some international securities).
The DrKW product:
- supports the reduction of client transaction costs through its use of straight-through processing (STP)
- provides a more ready quantification of operational risk
- Includes customizable functions enabling clients to develop the tool according to their own criteria and business needs
- monitors all transactions online and offers a real-time mark to market of all open equity-financing positions between the clients and DrKW.
EQ Finance also offers enhanced security, through the use of digital certificates and 128-bit encryption, and can be accessed via the firm’s Web site ( www.drkw.com) .