SecFinex, Electronic Securities Lending Platform, Set to Close

The company will stop taking on new business from Friday.
By None

SecFinex, the securities lending MTF, will close its doors. From Friday, the company will stop taking on new business.

James Dunseath, spokesman for NYSE Euronext, one of the companys shareholders, said: We believe a CCP for securities lending will play a major role over the long term. It will not be a high priority for the banks until there is a determined regulatory push and Basel III starts to impact capital requirements, which is not expected to happen for another year to 18 months. The model has struggled to gain traction in the current economic climate.

The latest development follows a strategic review by SecFinexs shareholders, NYSE Euronext, Societe Generale and ABN Amro.

Following the review, it was determined that continuing to provide financial backing to the company no longer met with the shareholders strategic objectives, said Dunseath.

From this Friday SecFinex will stop taking on new business. Loans will be managed until they are closed.

NYSE Euronext declined to comment on staff impact.

SecFinex has offered its electronic platform for securities lending since 2000. The acquisition by Euronext of a 51% stake in the company in 2007 meant that it could expand its reach to markets such as Austria, Germany and Switzerland.

(JDC)

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