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Thursday, February 29, 2024

eSecLending transitions clients successfully to T+1 settlements with Pirum’s automated Recalls Manager

As the US securities lending industry transitions to T+1 settlements, eSecLending has adopted Pirum’s Recalls Manager solution, to ensure uninterrupted best execution for its beneficial owner clients.

Boston, MA, February 29th, 2024 – eSecLending, a leading global securities lending agent, announces the adoption of the T+1-ready Recalls Manager solution from Pirum Systems, the globally preferred vendor for automated post-trade services.

eSecLending is the industry’s largest independent securities lending agent. The company’s alternative approach to securities lending combines best-execution service with cutting-edge technology. With nearly $850 billion in lendable assets, the agent lender’s diverse client-base includes pension funds, asset managers, insurance companies, sovereign wealth funds and corporations.

Ahead of the industry-wide move to T+1, eSecLending chose Pirum’s best-in-class Recalls Manager solution, because of its in-built capabilities – including reducing fails, CSDR penalties and overdraft costs, whilst simultaneously mitigating buy-in costs, as well as increasing trading desk capacity, control and oversight.

Jacob Koopmans, Chief Revenue Officer at Pirum, said: “We are delighted and priviliged to collaborate with eSecLending, in order for their clients to have a stable and successful journey into T+1 settlements. Pirum has a long relationship with eSecLending and we are pleased to expand our solutions for them in the US. It is through collaborations like these, between forward-looking, technologically advanced, and client-centric companies like eSecLending and Pirum, that we can truly improve and modernize the industry.”

“At eSecLending, we continually seek to refine and improve our operational infrastructure. By leveraging Pirum’s Recalls Manager product, we can ensure our client programs continue to operate seamlessly during the industry’s upcoming T+1 settlement transition, as well as future regulatory shifts”, said Larry Albaugh, Managing Director, Head of Global Operations at eSecLending. “While the reduced settlement cycle will demand increased efficiencies from securities lending to avoid market disruption, our pre-existing process of direct communication with our clients’ investment managers and increased processing automation from tools such as this Pirum product will allow us to accommodate the changes required to meet the expectations of both our lending and borrowing communities.”

The move contributes to eSecLending’s wider automation strategy, which seeks to ensure the firm both remains ahead of regulatory changes, like T+1 and the SEC’s Rule 10c-1a, and frees up time and resources to find new ways to add value for its clients.

About T+1

Trade settlement cycles for securities finance participants in several major jurisdictions are being halved from “trade date + 2 days (T+2 ) to ‘trade date + 1 day’ (‘T+1’). The US Securities and Exchange Commission’s (SEC) T+1 regulatory regime becomes effective on May 28th, 2024. Canada and Mexico are implementing T+1 the same day. HM Treasury’s Accelerated Settlements Task Force recently confirmed it has moved on from investigating whether the UK should move to T+1; instead, it is now focused on how and when the UK will transition to T+1. The European Commission has also signaled that it is planning to transition EU market participants T+1. India already operates fully, whilst China operates partly, on T+1 timelines. The rest of the world is widely expected to follow in the coming years.

About eSecLending

eSecLending is an independent global securities lending agent providing customized securities lending, auction and collateral management solutions for institutional investors worldwide. The company’s innovative approach introduced investment management practices to the securities lending industry, offering beneficial owners a compelling alternative to traditional pooled lending programs. Their differentiated process facilitates best execution by utilizing a transparent, disciplined and repeatable process to determine their clients’ optimal securities lending strategy. In addition to outperformance, their approach provides clients with greater transparency and control, allowing them to more effectively monitor and mitigate risks. For more information, visit www.eseclending.com

About Pirum System

Pirum Systems was founded in 2000 with the objective of automating the full post-trade lifecycle for the securities finance and collateral management industries. The Software as a Service (SaaS) platform has since become the industry gold-standard globally for post-trade automation and connectivity solutions. Today, the Pirum platform is used and trusted by over 120 leading financial institutions around the world, covering both buy- and sell-side activities. Pirum delivers automation, operational efficiency, and regulatory compliance, as well as reduced cost for its network of clients, who use Pirum services to process their trades in global financial markets. By connecting industry participants around the world, the Pirum dynamo sits at the heart of a complex multi-party financial markets eco-system, all the while increasing transparency, streamlining operations and fostering collaboration. www.pirum.com

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