19 January 2018
visit www.ebaday.com

DTCC to add cash settlement facility to automated syndicated loans platform

16 June 2009  |  3770 views  |  0 globe

The Depository Trust and Clearing Corporation is to add cash settlement, including delivery-versus-payment, to its Loan/Serv suite for the syndicated loans market.

Chris Childs, DTCC vice president, global loans product management says the addition of cash setlement will complement the company's existing Loan/Serv reconciliation and messaging services, which were introduced in 2008 to automate the trading and tracking of syndicated loans for both agent banks and lenders.

"Delivery versus payment will provide certainty to loan traders that cash settles simultaneously with changes to asset ownership recorded by the agent banks," he says.

A timetable for testing and production will be issued in the third quarter, he adds.

DTCC has been working with an advisory committee comprising representatives from the Bank of New York Mellon, Barclays Capital, Citi, Deutsche Bank, JPMorgan, and the Royal Bank of Scotland, to thrash out the details.

Eric Rosen, managing director at JPMorgan, welcomes the move: "This will be another giant step for the syndicated loan market, making the market more secure and helping ensure that settlement takes place, accurately and on time."

DTCC is competing with Euroclear to bring automation to the global syndicated loans market. The European depository has won the support of ten global banks for its multicurrency post-trade LoanReach service. Euroclear is promising to introduce DvP settlement for primary and secondary market loan trades, automated agent notices as well as collateral management services, by the end of the 2009.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

DTCC to overhaul aging accounts transfer system

DTCC to overhaul aging accounts transfer system

12 June 2009  |  4243 views  |  0 comments
DTCC, Swift and XBRL US team on corporate actions processing

DTCC, Swift and XBRL US team on corporate actions processing

28 May 2009  |  9164 views  |  0 comments
DTCC calls off LCH.Clearnet merger

DTCC calls off LCH.Clearnet merger

29 April 2009  |  11167 views  |  0 comments
DTCC plans real-time trade guarantee

DTCC plans real-time trade guarantee

29 January 2009  |  6431 views  |  0 comments
Euroclear and DTCC eye syndicated loans processing

Euroclear and DTCC eye syndicated loans processing

08 September 2008  |  9710 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.capgemini.comvisit www.fivedegrees.nlvisit www.thomsonreuters.info

Top topics

Most viewed Most shared
Europe begins Open Banking era in subdued styleEurope begins Open Banking era in subdued...
11213 views comments | 32 tweets | 38 linkedin
Crypto mining threatened by power capacity concernsCrypto mining threatened by power capacity...
10330 views comments | 17 tweets | 18 linkedin
Wells Fargo to close 900 branchesWells Fargo to close 900 branches
9936 views comments | 14 tweets | 16 linkedin
KFC introduces Bitcoin BucketKFC introduces Bitcoin Bucket
9397 views comments | 18 tweets | 16 linkedin
FinTech Scotland appoints new CEOFinTech Scotland appoints new CEO
8481 views comments | 8 tweets | 6 linkedin

Featured job

Competitive base + commission
London, UK

Find your next job