CCP & Exchange Solutions

DEFAULT MANAGEMENT APPLICATION – DMAPP

eSecLending has developed the DMApp software application to provide central counterparties (CCPs) with a centralized and automated asset liquidation platform. It is a fully hosted technology available to CCPs and their clearing members via a secure website, and has been designed to deliver significant cost and time savings as well as to demonstrate a controlled and disciplined default management process to regulators, auditors, boards of directors and compliance groups.

DMApp Benefits to CCPs Include:
  • Provides significant administrative and cost efficiencies for clearing houses
  • Mitigates risk through automation and role-based permissions
  • Automates communication, bidding and evaluation of the liquidation event across numerous asset classes

COLLATERALIZED LIQUIDITY FACILITIES – A NON-BANK ALTERNATIVE

eSecLending has developed an innovative, pre-funded and committed repurchase facility that provides clearing houses with a diversified source of funding during times of market stress.

This pre-funded facility allows clearing houses to gain access to non-bank and non-clearing member liquidity as a complement or supplement to their existing commercial bank lending facilities.

  • High quality counterparty transaction
  • Non-correlated counterparties achieves right way risk trade
  • Addresses liquidity planning for CCPs
  • Provides competitive risk adjusted return for Institutional Investor

Collateralized Liquidity Facility Benefits to Clearing Houses Include:
  • Non-bank sources offer right way risk to supplement traditional bank-sponsored syndicates
  • Fully committed, pre-funded cash balances ensure clearing houses have timely access to funding
EXCLUSIVE BORROWING/REPO ARRANGEMENTS

eSecLending offers CCPs direct access to committed pools of equities or fixed income securities which can be borrowed to cover shortfalls that might exist during a clearing member liquidation.

Benefits to CCPs Include:
  • Alternative or complement to guaranteed liquidity lines
  • Supports disciplined liquidation of member assets during times of market stress

AGENCY LENDING FOR LIQUIDITY

eSecLending provides our industry-leading securities lending agency services to CCPs. Borrowers will provide the CCPs with cash equal to the full value of the securities borrowed, plus additional margin, with all assets being held in segregated custody accounts. The CCPs, as lenders, also retain the right to recall or replace lent securities at any time and at their discretion.

Agency Lending for Liquidity Benefits to Clearing Houses Include:
  • Access to non-committed liquidity from highly rated borrowers of securities
  • Fully outsourced solution to support core business needs during normal market conditions