EquiLend, a leading fintech company in Wall Street's securities lending sector, announced on Thursday that it has received a minority investment from a U.S. banking giant, BNY. Securities lending involves the borrowing and lending of various assets like stocks and bonds to support liquidity management and trading strategies.
Institutional investors, including major banks, asset managers, and hedge funds, utilize securities lending to enhance portfolio returns and comply with regulatory capital guidelines. EquiLend is partially owned by prominent financial entities such as Goldman Sachs, BlackRock, JPMorgan Chase, and Bank of America Merrill Lynch.
Apart from BNY, eight other key financial firms that hold strategic investments in EquiLend will collaborate to drive innovation and enhance efficiency in the industry. BNY's Head of Securities Finance, Nehal Udeshi expressed confidence in EquiLend's influence on the market and their plans to revolutionize securities finance with cutting-edge market infrastructure.
According to a recent report by data service provider DataLend, the global securities finance sector garnered $703 million in revenue for lenders in February. Established in 2001 by a consortium of financial institutions, EquiLend has since 2002 offered technology and services for securities finance, with a diverse client base of nearly 200 firms ranging from asset owners to hedge funds, among others.