ANCHORAGE, Alaska – Alaska USA FCU's trust company is in negotiations to act as a central counterparty for transactions on a new securities lending exchange.
The new lending exchange, dubbed LendEX, is being launched by former Securities and Exchange Commission Chairman Harvey Pitt and John Tobacco, founder of LocateStock.
Securities trading is an enormous business that generated more than $12 billion in fees last year from brokerages, banks, credit unions and a variety of other institutions.
As the central counterparty, Alaska USA Trust Company will stand between borrowers and lenders in all transactions, acting as a credit intermediary and maintaining the anonymity of the trading platform. The firm has established a new DTC number exclusively to facilitate LendEx trading.
The market for lending securities is currently dominated by large custodian banks that lend client assets directly to broker/dealers, when then re-lend them to other institutions.
