IHS
Markit (Nasdaq: INFO), a world leader in critical information,
analytics and solutions, today announced that its ClearPar service is
delivering syndicated loan trade settlement and trade funding
information directly to custody systems using electronic messaging. The
advance improves accuracy at custodians and reduces the risk of
penalties that arise when buyers are late in making payments on loan
trades.
J.P. Morgan Securities Services and BlackRock are the first two
organizations to benefit from the new Custodian Services Messaging
solution from ClearPar which delivers electronic messages covering
notice of settlement date, settlement amounts and wire instructions to
custodians and trustees.
“Our messaging solution for trade funding instructions brings another
layer of automation to the trade process and demonstrates how we
continue to deploy innovative technology to improve efficiency
throughout the market,” said Sarah Wagner, managing director at IHS
Markit. “We now offer system-to-system integration for the full scope of
post-trade functions in the loan market, meaning that asset managers,
other lenders, agents and custodians can automate how they process
position data, lifecycle events, trade payments and other cash
transfers.”
Under rules established by the Loan Syndication and Trading Association
(LSTA), late payment by a buyer gives the seller the ability to claw
back the interest that might have accrued on the trade prior to
settlement. With electronic trade messaging, custodians receive
immediate notice when trades settle and can process payments without
manual intervention, avoiding potential delays that can result in loss
of interest income due to late payment.
“This perfectly aligns with the strategy of J.P. Morgan Securities
Services, which has been developing a single end to end data integration
framework to break down traditional pain points in the post-trade
lifecycle for buy side clients. Working with IHS Markit to further
automate the bank loans settlement process for the increasingly crucial
syndicated loans market is a major advancement” said Naveen TV, managing
director at J.P. Morgan Securities Services. “Together, we are improving
the client experience by creating a seamless and accurate settlement
process, and completely eliminating manual tasks.”
“We are always looking to leverage technology to create scale, reduce
risk, improve efficiency of our operations and, most importantly, create
better outcomes for our clients”, said Sandra Stulberger, Bank Loan
Operations director at BlackRock. “Our work with IHS Markit to
streamline workflow in the syndicated loan market checks all of these
boxes and will help foster the development of this market.”
The new integration supplements the suite of post-trade automation
services ClearPar offers lenders, agents and custodians. Since the start
of 2015, ClearPar has automatically transmitted closing documents in
electronic format to custodians when trades settle, eliminating that
step in the trade closing process for lenders.
About IHS Markit (www.ihsmarkit.com)
IHS Markit (Nasdaq: INFO) is a world leader in critical information,
analytics and solutions for the major industries and markets that drive
economies worldwide. The company delivers next-generation information,
analytics and solutions to customers in business, finance and
government, improving their operational efficiency and providing deep
insights that lead to well-informed, confident decisions. IHS Markit has
more than 50,000 key business and government customers, including 85
percent of the Fortune Global 500 and the world’s leading financial
institutions. Headquartered in London, IHS Markit is committed to
sustainable, profitable growth.
IHS Markit is a registered trademark of IHS Markit Ltd and/or its
affiliates. All other company and product names may be trademarks of
their respective owners © 2017 IHS Markit Ltd. All rights reserved.
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