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EquiLend Acquires AQS and Its Securities Lending Technology Systems.

MANews-(C)2009-2016

1 August 2016 - US-based trading and post-trade services provider EquiLend has acquired Automated Equity Finance Markets, Inc., commonly known as AQS, along with its securities lending technology systems from PDQ ATS operator PDQ Enterprises, the company said on Monday.

AQS will be rebranded to EquiLend Clearing Services.

The acquired technology facilitates connectivity to OCC's Market Loan Program, whereby matched securities finance loans are seamlessly processed for central counterparty clearing through OCC, the world's largest equity derivatives clearing organization.

This acquisition brings together industry stakeholders and represents years of collaboration and cooperation between the companies and leadership involved in the transaction.

In the short term, EquiLend will operate AQS as is; existing clients of AQS should expect no disruption of service. By the end of 2016, EquiLend intends to connect its trading and post-trade services, including NGT, with AQS.

The connection will provide market participants with straight-through trade processing capabilities and electronic trade submission to OCC's stock loan clearing solutions. AQS CEO Pat Cestaro and Co-Founder Greg DePetris will remain as senior advisers to EquiLend regarding CCP-related issues.

As operators of Automated Equity Finance Markets, Inc. and liaisons with its key constituents, Cestaro and DePetris acted as principal collaborators with EquiLend and industry stakeholders to help shape a mutually beneficial relationship for all parties involved in the deal.

Terms of the deal are not disclosed.

EquiLend is a provider of trading and post-trade services for the securities finance industry with offices in New York, London, Hong Kong and Toronto.

The company is backed by ten global financial institutions, including BlackRock, Credit Suisse, Goldman Sachs, J.P. Morgan Clearing, J.P. Morgan Chase, Bank of America Merrill Lynch, Morgan Stanley, Northern Trust, State Street and UBS.

PDQ ATS is an independent alternative trading system, based in Glenview, Ill., that optimises liquidity aggregation for market participants via an innovative auction process.

OCC is the world's largest equity derivatives clearing organisation.

Founded in 1973, OCC operates under the jurisdiction of both the US Securities and Exchange Commission as a Registered Clearing Agency, and the US Commodity Futures Trading Commission as a Derivatives Clearing Organization.

OCC now provides central counterparty clearing and settlement services to 19 exchanges and trading platforms for options, financial futures, security futures, and securities lending transactions.

Country: USA

Sector: Banking/Financial Services

Target: AQS, securities lending technology systems

Buyer: EquiLend

Vendor: PDQ Enterprises

Deal size in USD:

Type: Corporate Acquisition

Financing:

Status: Closed

Buyer advisor: , ,

Comment: Terms of the deal were not disclosed

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Publication:M & A Navigator
Date:Aug 1, 2016
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