System and method for securities borrowing and lending

1. A method for conducting securities transactions via a hub in electronic communication with a distributed network, the hub comprising a messaging tier for receiving requests from proprietary systems, a presentation tier for receiving requests sent via a browser, and an application tier for validating, processing, and satisfying requests received by the messaging tier and the presentation tier and for creating response messages, the method comprising:

receiving at the hub an order from a securities lender to lend an available number of shares of a particular security,

broadcasting from the hub a notification of the order to a plurality of securities borrowers via the distributed network, the notification to each securities borrower including unique information for that securities borrower,

receiving and sending requests via the hub whereby at least two borrowers engage in simultaneous negotiations for a loan of shares of the security from the lender,

receiving at the hub responsive communications from the at least two of the plurality of borrowers, the responsive communications each indicating acceptance of the order for a portion of the available number of shares;

transmitting from the hub to the lender the responsive communications from the at least two of the plurality of securities borrowers, wherein the at least two borrowers separately enter into security lending transactions with the lender to borrow a portion of the available number of shares from the order of the particular security, and

assigning a transaction identifier to each of the securities lending transactions, the transaction identifier enabling establishment of a link between securities loan returns and trades, between securities loan recalls and trades, and between securities loan returns and securities loan recalls, whereby the transaction identifier is associated with the securities lending transaction for an entire trade lifecycle;

wherein the step of assigning a transaction identifier is performed by the hub.

2. The method of claim 1 , comprising making a second notification to the at least two borrowers via a distributed network that the borrowers are negotiating simultaneously.

3. The method of claim 1 , comprising assigning a unique identifier to the securities lending transaction upon execution of the transaction.

4. The method of claim 1 wherein the unique information for each securities borrower includes a max quantity value indicating the total number of shares of the particular security available for lending to the securities borrower.

5. The method of claim 4 further comprising:

receiving from the lender a total max quantity value indicating the total number of shares of the particular security available for lending to the plurality of borrowers;

after a borrower accepts the order from the securities lender, updating the max quantity value for remaining borrowers to indicate the current total number of shares available for lending to the remaining borrowers.

6. The method of claim 5 further comprising sending a notification to the lender when the quantity of shares in the accepted orders reaches or exceeds the total max quantity value.

7. The method of claim 5 further comprising automatically cancelling all remaining orders once the quantity of accepted orders reaches the total max quantity value.

8. The method of claim 1 further comprising assigning a common simultaneous negotiation identifier to the orders sent to the plurality of securities borrowers.

9. A method for automatically borrowing securities via a hub in electronic communication with a distributed network, the hub comprising a messaging tier for receiving requests from proprietary systems, a presentation tier for receiving requests sent via a browser, and an application tier for validating, processing, and satisfying requests received by the messaging tier and the presentation tier and for creating response messages, the method comprising:

receiving at the hub via a first request from a borrower to borrow an available number of shares of a particular security, the first request comprising desired terms,

processing the first request by the application tier of the hub to create an order in accordance with the desired terms and for the available number of shares,

broadcasting from the hub a notification of the order to participating member firms via the distributed network,

receiving and sending requests via the hub whereby at least two lenders engage in simultaneous negotiations for a loan of shares of the security to the borrower,

receiving at the hub responsive communications from the at least two lenders, the responsive communications each indicating acceptance of the order for a portion of the available number of shares;

transmitting from the hub to the borrower the responsive communications from the at least two lenders in response to the order, wherein the at least two lenders separately enter into security lending transactions with the borrower for a portion of the available number of shares from the order of the particular security, and

assigning a transaction identifier to each of the securities lending transactions, the transaction identifier enabling establishment of a link between securities loan returns and trades, between securities loan recalls and trades, and between securities loan returns and securities loan recalls, whereby the transaction identifier is associated with the securities lending transaction for an entire trade lifecycle;

wherein the step of assigning a transaction identifier is performed by the hub.

10. The method of claim 9 , further comprising transmitting notification to the borrower and the at least two lenders.

11. The method of claim 10 , wherein the notification comprises trade tickets.

12. The method of claim 9 , wherein the broadcasted order to each participating member firm includes unique information associated with that member firm.