Financial data outfit Markit has agreed to buy the position reconciliation technology assets of Loan/Serv from the Depository Trust & Clearing Corporation (DTCC). Financial terms have not been disclosed.
The Loan/Serv Loan Position Reconcilement service is used by nearly 400 asset managers representing 6000 funds in the global syndicated loan market to reconcile over one million positions with the records maintained by administrative agent banks.
Markit will integrate the technology with its loan inventory platform, says Scott Kostyra, head, loan settlement, Markit processing division, adding: "The combination of the data from Loan/Serv with the real time position data in Markit Clear will unify the experience for lenders and help them operate more efficiently by reducing the number of systems required to manage loan assets."
The vendor is also planning to develop new cash settlement functionality in its loan trade settlement platforms to better synchronise asset delivery with payment, reduce risk and improve efficiency in the market.
Under the terms of the deal - slated to close later this month - the DTCC will continue to run the Loan/Serv application on behalf of Markit until it is integrated into the buyer's processing division.