Interactive Data, a provider of financial market data, analytics and related services, yesterday announced that its pricing and reference data business will supply interdealer broker ICAP with a wide range of pricing and reference data for i-Sec, ICAP’s new electronic trading platform for securities lending.
i-Sec enables traders active in securities finance to borrow or lend equities via a screen-based, electronic platform that combines a leading order matching system with a high-speed, high capacity and fully redundant communications network. The data supplied to i-Sec is being provided via an interface with Interactive Data's FTSSM online portfolio administration service.
Securities lending is a huge and growing business for the professional investment community. An explosion in securities lending trading volumes through business expansion has combined with continued pressure on spreads and growing commoditisation of many transactions to have an impact on profitability, the firm says.
"Electronic trading on i-Sec enables market participants to improve their distribution and leverage their relationships by bringing together multiple sources of supply and demand, increasing efficiency and reducing cost," comments Roy Zimmerhansl, head of securities lending, ICAP. "The i-Sec platform has been designed by traders for traders, and offers functionalities that are not currently available in the market. With our existing client network and strong presence in electronic broking, ICAP is well positioned to add real value to the securities lending market."
Brendan Beith, European sales director of Interactive Data's pricing and reference data business, adds, "We are delighted that ICAP has selected Interactive Data as its preferred data vendor for this exciting new securities lending tool and look forward to working with ICAP to build on this new area of their business. We interface with over 250 application and software vendors, and have always had the flexibility to offer our information in the preferred format of customers."