FIS introduces trade matching solution

Through the new Securities Finance Matching Platform, which was developed to serve the needs of UK-based lenders and borrowers, FIS intends to deliver secure, scalable, and convenient processing of securities finance trades. The cloud-native solution leverages smart automated matching technology and focuses on increased resilience by offering an improved approach to the market which can mitigate single-point-of-failure risk.

Moreover, FIS’ decision to launch the Securities Finance Matching Platform was based on the expanding volumes in the securities finance market, with lenders and borrowers requiring increased levels of automation to minimise costs and drive efficiency. The solution aims to address these difficulties by providing an economic match accurately and securely, as it identifies the best-match scenario by computerising the evaluation of several factors involved in securities trading. Some of these include fee or rebate rates, capital requirements, transaction and reporting costs, and counter-party trading patterns.

Through these capabilities, FIS’ solution is set to enable customers to achieve depth and liquidity in the market, whilst optimising risk management by removing single-point-of-failure risk. Securities Finance Matching Platform comes as an addition to the FIS Securities and Collateral Management product suite, currently seeing interest from financial institutions, with UK clients predicted to come on board in the upcoming period. Additionally, institutions that are not based in the UK are set to be able to join the solution after the projected expansion into EU and US markets. At the time of the announcement, entering these regions was still pending additional regulatory approvals.

According to FIS’ officials, lenders and borrowers are on a continuous search for a service provider that can deliver automated matching solutions, and also reduce manual intervention. With the new solution, FIS intends to support securities lending and assist financial institutions in minimising costs and risk and increasing returns.