The Depository Trust & Clearing Corporation (DTCC) announced today that Misys plc, a global supplier of technology solutions to the banking and the financial services industry, will link its Loan IQ Solution to DTCC's Loan/Serv Reconciliation Service this September, enabling clients to view and reconcile loan positions on a daily basis.
Misys Loan IQ is used by leading financial institutions worldwide to automate and develop their commercial lending business. Backed by more than 15 years of industry leading experience, Loan IQ Solution today processes more than one-third of the world's syndicated loans and more than one-half of the world's loan trades.
"We are very excited about working with DTCC and helping to bring their solutions to the market," said Ken Katz, Misys Loan IQ Senior Solutions Manager. "The syndicated loan market will benefit significantly from electronic reconciliation and we are committed to helping our world-class clients transform the industry."
"Leading global investment management firms need to make sure their loan positions are consistent with the agent bank records to ensure the accurate and timely servicing of these loans. Loan/SERV provides this data access in a real-time manner," said Mathew Keshav Lewis, DTCC vice president, European Loans Product Management. "By linking to Loan/SERV, Misys will improve the ability of its clients to reconcile loan positions with the major agent banks in both the United States and Europe, reducing risk, boosting efficiencies and providing greater transparency in the syndicated loan market."
Prior to the launch of DTCC's Loan/SERV Reconciliation Service, lenders and banks reconciled loan positions independently of one another, a process prone to errors, miscalculations and delays.
Misys joins a growing list of financial services firms that have linked their loan administration systems to the Loan/SERV Reconciliation Service. Other firms linking to Loan/SERV include Markit (WSO) and Deloitte & Touche LLP (CDO Suite).
The Reconciliation Service, already in full production with leading global banks such as J.P. Morgan, Citi and Deutsche Bank, provides information on more than 75,000 loan positions.
"The reconciliation initiative is a natural extension of the enhancements we have beenen making to Loan IQ in support of FpMLTM and the DTCC Messaging Service," said Katz.
Utilizing FpML, the industry-standardized e-commerce language, the Loan/SERV Messaging Service provides a secure and automated network for the transmission of standard loan messages between agent banks and lenders in the syndicated loan market.
Loan/SERV is an evolving suite of services that will provide a comprehensive, integrated solution for the syndicated loan market. DTCC announced recently that it would add multi-currency settlement capabilities, including Delivery versus Payment (DVP), to its Loan/SERV suite of services beginning in 2010.
Loan/SERV is a service offering of DTCC Loan/SERV LLC, a subsidiary of DTCC.