SunGard has expanded its Loanet suite of securities finance solutions with the launch of Loanet Automated Rebate Collection to help securities finance, operations, trading and technology professionals more efficiently handle the collection and settlement of rebates from firms borrowing or lending securities.
The borrower and the lender of a security accrue rebates that are generally collected by the payee on a monthly basis. Each party maintains its own records and relies on time consuming and inefficient manual processes such as emails and phone calls to resolve discrepancies and collect payments.
SunGard's Loanet Automated Rebate Collection service streamlines the process for both matched and disputed rebates. It automatically collects rebates for matched payments, schedules their settlement, and extracts and reports rebate collection data. Optional modules automatically update general ledger systems for rebate payments, write-offs and adjustments. An easy-to-use workflow helps users research and negotiate any discrepancies with their counterparties. The service also centralizes all rebate collection and payment information and provides a full audit trail of all activities related to the negotiation and settlement of rebate charges.
Josh Galper, managing principal of Finadium, said, "Securities finance participants continue to adapt to faster moving markets and higher levels of regulation. Further automating the rebate collection process provides welcome relief from a time consuming and occasionally frustrating process. It also frees up important internal resources to focus on higher value added tasks."
John Grimaldi, executive vice president, North American securities operations and securities finance for SunGard's capital markets business, said, "Breakdowns in the collection and settlement process and the lack of straight-through processing can create excessive costs, risks, regulatory issues, and potential financial losses. Loanet Automated Rebate Collection helps automate this process, helping firms collect their payments more quickly and helping staff to focus on resolving exceptions."