Markit, a global financial information services company, has agreed to acquire the Loan/SERV messaging portal from the DTCC.
The acquisition expands the ability of Markit's loan messaging hub, Markit WSOData, to accept and distribute Financial Products Markup Language (FpML) messages from agent banks.
Markit WSOData receives by email, fax and FpML more than seven million agent notices on syndicated loans each year and redistributes over four million of those notices to clients via electronic straight-through delivery.
As the industry migrates from sending critical information about loans via email and fax to FpML, the new standard for electronic data exchange for financial products, Markit WSOData will increase the capability to update electronically clients' portfolio management systems in real time.
DTCC Loan/SERV's messaging portal, in a pilot program, recently demonstrated the first end-to-end delivery of FpML messages in the loan industry.
Karoline Kane, executive director, Global Loan Operations at J.P. Morgan said: "Expansion of Markit's loan messaging hub is valuable to agent banks because it allows us to interface with one platform to send loan notifications via FpML and permits a seamless transition from faxes and emails to the new standard in technology."
Joe Widner, global head of loan processing at Markit said: "Expanding the capabilities of our loan messaging hub and integrating FpML functionality with our loan settlement platform enables us to provide a level of transparency and accuracy about loan data not previously available to lenders and agent banks. The acquisition is an important step in Markit's effort to promote efficiency in the loans market."
DTCC and Markit announced plans last year to bring together key services for the loan market to increase efficiency and help reduce counterparty and operational risk in the multi-trillion-dollar syndicated loan market.
Chris Childs, DTCC Managing Director, Asset Services said: "Contributing DTCC Loan/SERV to Markit's Global Loan Processing business continues our efforts to bring together key services for the loan market in order to offer a comprehensive solution for the processing of syndicated loans."