SecFinex

Last updated
SecFinex
Type Lending & Borrowing market
Location London, United Kingdom
Founded November 2000
Owner

Majority owner:

Minority owners:

Key people Allen Postlethwaite, founder and CEO
Ceased operating in December 2011.
Formerly known as PPA Capital Limited

SecFinex was a UK-based electronic stock lending and borrowing platform that operated between 2000 and 2011. [3] It was closed down in December 2011, when its main owner, NYSE Euronext, said that despite it believing that central counterparty would play an important part in stock borrowing in the future the business had not gained enough tracking and they had decided to no longer financial support it. [4] The business was wound down and its authorization was removed from the FSA register on January 6, 2012. [5]

In finance, securities lending or stock lending refers to the lending of securities by one party to another. The terms of the loan will be governed by a "Securities Lending Agreement", which requires that the borrower provides the lender with collateral, in the form of cash or non-cash securities, of value equal to or greater than the loaned securities plus agreed-upon margin. Non-cash refers to the subset of collateral that is not pure cash, including equities, government bonds, convertible bonds, corporate bonds, and other products. The agreement is a contract enforceable under relevant law, which is often specified in the agreement.

Financial Services Authority former quasi-judicial body in the UK

The Financial Services Authority (FSA) was a quasi-judicial body responsible for the regulation of the financial services industry in the United Kingdom between 2001 and 2013. It was founded as the Securities and Investments Board (SIB) in 1985. Its board was appointed by the Treasury, although it operated independently of government. It was structured as a company limited by guarantee and was funded entirely by fees charged to the financial services industry.

Contents

Overview

Originally known as PPA Capital Limited, the company changed its name to SecFinex, Ltd. in November, 2000. As of March 2007, SecFinex, Ltd. operated as a subsidiary of Euronext and later operated as a subsidiary of LIFFE (Holdings) plc. [6]

Euronext N.V. is a European stock exchange operator with its registered office in Amsterdam and other markets operated in Brussels, London, Lisbon, Dublin, and Paris. In addition to cash and derivatives markets, the Euronext group provides listing market data, market solutions, custody and settlement services. Its total product offering includes equities, exchange-traded funds, warrants and certificates, bonds, derivatives, commodities and indices as well as a foreign exchange trading platform.

The trading platform covered equities on Dutch, French, German, Irish, Italian, Japanese, Spanish, Swedish, Swiss, the United Kingdom [6] and US [7] equity markets.

Transactions on SecFinex were cleared by the following CCPs:

SIX Swiss Exchange, based in Zurich, is Switzerland's principal stock exchange. SIX Swiss Exchange also trades other securities such as Swiss government bonds and derivatives such as stock options.

SecFinex Limited was Authorised and Regulated by the Financial Services Authority (FSA)

Main competitors

See also

Electronic or scripless trading, sometimes called e-trading or paperless trading is a method of trading securities, foreign exchange or financial derivatives electronically. Information technology is used to bring together buyers and sellers through an electronic trading platform and network to create virtual market places. They can include various exchange-based systems, such as NASDAQ, NYSE Arca and Globex, as well as other types of trading platforms, such as electronic communication networks (ECNs), alternative trading systems, crossing networks and "dark pools". Electronic trading is rapidly replacing human trading in global securities markets. Electronic trading is in contrast to older floor trading and phone trading and has a number of advantages, but glitches and cancelled trades do still occur.

NYSE Euronext, Inc. was a Euro-American multinational financial services corporation that operated multiple securities exchanges, including the New York Stock Exchange, Euronext and NYSE Arca. NYSE merged with Archipelago Holdings on March 7, 2006, forming NYSE Group, Inc. On April 4, 2007, NYSE Group, Inc. merged with Euronext N.V. to form the first global equities exchange, with its headquarters in Lower Manhattan. The corporation was then acquired by IntercontinentalExchange, which subsequently spun off Euronext.

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New York Stock Exchange American stock exchange

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Depository Trust & Clearing Corporation company

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Clearing (finance) all activities from the time a commitment is made for a financial transaction until it is settled

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Euroclear business

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References

  1. ↑ "NYSE Euronext 2009 NYSE Euronext 10-K (2009 Annual Report)". NYSE Euronext. 2010-03-01. p. 191. Retrieved 2011-01-19.
  2. 1 2 "Euronext buys 51% stake in securities lending platform SecFinex". TheTradeNews.com. 2006-12-19. Retrieved 2011-01-28.
  3. ↑ "Euronext buys 51% stake in securities lending platform SecFinex". The Trading News. 2006-12-19. Retrieved 2011-01-15.
  4. ↑ "SecFinex to close doors". Securities Lending Times. 2011-11-29. Retrieved 2012-01-14.
  5. ↑ "FSA Register - SecFinex". FSA. 2012-01-06. Retrieved 2012-01-14.
  6. 1 2 "SecFinex Ltd. Company Overview". Bloomberg Business Week. Retrieved 2011-01-15.
  7. 1 2 "SecFinex Overview". LCH.Clearnet. Retrieved 2011-01-15.
  8. ↑ "SLIB Extends its Clearing Solutions to SecFinex Securities Borrowing/Lending on LCH.Clearnet SA". DerivSource.com. 2009-09-15. Retrieved 2011-01-15.
  9. ↑ "SecFinex signs with SIS x-clear for securities lending CCP". Finextra. 2008-11-25. Retrieved 2011-01-15.
  10. ↑ "SecFinex products to be cleared by BNP Paribas Securities Services". euronext.com. 2009-01-17. Retrieved 2011-01-17.
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