Securities lending

Risk and Reporting for Security Finance

Increased regulatory pressure, high levels of market volatility and the growing importance of cashflow management have placed an unprecedented level of attention on the IT systems used by market participants. Organisations need to be sure that systems they use are capable of dealing with the additional demands put on them by the rapidly changing market environment.

Controversy surrounding unauthorised short-selling has led to institutions having to provide accurate short selling inventories to regulators at short notice. As liquidity becomes increasingly scarce, institutions have to become more careful and smarter in the way that positions are funded. Conditions in which securities are borrowed today are likely to be very different in six months’ time. Institutions have realized the growing need to be able to manage security financing in a very transparent manner.

Our expertise

Sophis' market leading security finance application has been designed to provide our clients with the level of confidence required to deal with this increasingly complex and challenging market environment.

Clients benefit from full front to back office management across a comprehensive coverage of instruments. Sophisticated collateral management, client reporting in terms of P&L, risk, integrated cashflow, payment and settlement complete the scope of functionalities.

Sophis covers the full range of security finance business with these functionalities: index arbitrage, refinancing services and synthetic prime brokerage (CFD), can be adapted to both buy-side and sell-side financial institutions as well as any corporate.

Product Coverage

• TRS (equity swap, bond swap, index swap, basket swap, portfolio swap, price swap, and dividend swap)
• CFD (equity and index)
• Stock loans
• Repo and exchange traded funds

Find out about our solutions and technology

Learn more about our customisation capabilities

Read our quantitative team publications