Pitt's Platform To Light Up Securities Lending
LocateStock.com announces a joint venture with Kalorama Partners to launch the first ever, fully electronic U.S. Securities Lending platform, LendEX.
Jersey City, NJ (PRWEB) April 1, 2008 -- LocateStock.com announced today a joint venture with Kalorama Partners to launch the first ever, fully electronic U.S. Securities Lending platform, LendEX (www.lendexchange.com).
Backed by former Securities and Exchange Commission chairman, Harvey Pitt, along with the founder and Chief Executive of LocateStock.com, John Tabacco, the LendEX platform will add transparent and dynamic solutions to the previously opaque securities lending and short selling market.
LendEX's introduction to the marketplace is a timely one. With the subprime fallout and recent credit crunch tracing their origins to the lack of controls in place to assess CDO risks, regulators are scrambling for real time electronic tools, and new innovative solutions that add transparency. Combining the former SEC chairman's comprehensive understanding of regulatory needs with LendEX's proprietary and innovative technology will introduce a new level of transparency to market participants.
Mr. Pitt predicts that the regulators will impose new securities lending rules this year. This is based on the belief that "there is a need for higher legal standards in securities lending," he said.
John Tabacco notes that April 2008 marks the beginning of a new era in securities lending transparency. "LendEX will give beneficial owners and short selling end users a dynamic real-time liquidity pool to more efficient price trades, and achieve higher returns at a critical time for all market participants," said Mr. Tabacco.
Potential LendEX securities lending participants include insurance companies, public and private pension funds, hedge funds, mutual funds, endowments and banks and broker dealers. Alaska USA Trust Company will provide conduit lending services for these potential participants and their respective counter parties.
Alaska USA Trust Company is an Alaska state chartered non-depository financial institution providing personal and institutional trust services. It has over $7 billion under administration and serves approximately 600 institutional and individual investors. Glenn Cipriano, president of the Alaska USA Trust Company says that securities lending's growth combined with the use of more electronic tools will transform the business. "Five years from now, it's going to be a completely different market. It will be an institutional electronic exchange just like everything else. This looks to be the last vestige of the broker to broker business," said Mr. Cipriano.
LendEX is an Institutional Securities Lending Portal that offers portfolio securities, including "hard-to-borrow" securities, via an open marketplace to all Securities Lending Participants.
About LocateStock.com
LocateStock.com is the premier electronic securities lending company providing revolutionary, real-time, hard-to-borrow stock locates and market data to hedge funds and professional traders seeking an efficient and private way to borrow stock associated with short sales.
To learn more about hard-to-borrow stocks please visit www.LocateStock.com.
CONTACT: pressrelease @ locatestock.com / 201-332-6800
SOURCE: Locate Stock, LLC
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