DTCC Launches New Global Messaging Service for the Syndicated Loan Market
The Depository Trust & Clearing Corporation (DTCC) is launching its Loan/SERV Messaging Service that will provide a secure and automated network for the transmission of standard loan messages between agent banks and lenders in the syndicated loan market. The global Messaging Service is the second in a suite of DTCC products that will make Loan/SERV a comprehensive, integrated solution for the syndicated loan market.
Currently, loan information is faxed back and forth between agent banks and lenders, leading to errors caused by manual processing. The Messaging Service takes widely-used loan information, such as interest and principal payments, rate resets, drawdown notices and ongoing fee payments, and provides a secure and automated network for the transmission, receipt and online storage of these loan messages. The global standard loan messages have been developed by The Loan Syndications and Trading Association (LSTA) in the United States in cooperation with The Loan Market Association (LMA) in Europe.
"We're delighted that DTCC has incorporated the industry's standard loan messages into its new service," said Bram Smith, interim executive director of the LSTA, in a press release. "The messages will go a long way to boosting efficiencies and reducing communication errors in loan processing. The standards will give banks and lenders greater control over their communications and improve the reliability and timeliness of their communications in both the primary and secondary markets. We hope that all market participants will begin using the standard messages," he added.