EXCLUSIVE: Bank of China subsidiary implements SunGard securities lending solution

Investment bank BOCI, a subsidiary of Bank of China, has implemented SunGard’s Global One securities finance solution to help boost its recently launched securities lending business.

BOCI will use the Global One Lender module to support its lending business, which lends Hong Kong and Chinese stocks listed on the Hong Kong Stock Exchange.

Global One provides a range of services required in securities financing, including trading and settlement, and will integrate with BOCI’s architecture to boost time to market, according to SunGard. BOCI will also use the Global View reporting tool to provide reports to its clients.

The development comes at an interesting time for securities lending in China, with the State Council in January announcing plans for a trial of margin financing and short selling. A report by state broadcaster CCTV in late February quoted an official at the China Securities Regulatory Commission who said that these trials could begin at the end of March 2010.

Commenting on the BOCI deal, Craig Costigan, executive vice president and general manager of securities finance at SunGard, said: “We are pleased to be a component of BOCI’s business growth in securities lending. BOCI’s implementation of Global One demonstrates that SunGard’s solutions and business experience are able to help customers successfully launch and grow their securities lending programmes.”