DTCC-owned clearing house NSCC, in the US, has gone live with its “Securities Financing Transaction Clearing Service”, built on systems from Provable Markets and FIS.

According to a press release, the service allows central clearing between full-service members to NSCC, as well as for securities-financing transactions (SFTs) intermediated by members categorised as sponsoring members or agent clearing members.

The solution builds on Aurora, an alternative trading system from Provable Markets, with connectivity and integration from FIS Securities Lending Processing Platform, previously known as Loanet. DTCC claims it could potentially bring benefits on many fronts, including new borrowing and lending opportunities with a wide range of counterparties, balance-sheet and capital optimisation, a reduction of operational burdens such as agent lender disclosures (ALD), and lower systemic risk.

“To capture maximum capital and balance sheet efficiencies, all SFTs are required to be executed as overnight transactions. However, to minimize the operational burden of settling overnight obligations, settlements are allowed to pair off daily against new activity, with NSCC calculating and processing a Price Differential/mark-to-market (MTM), that are created by the daily pair off,” the clearing house explains.