Clearstream has announced a partnership with the Depository Trust & Clearing Corporation (DTCC) to support bilateral and syndicated loan markets.
Clearstream will leverage DTCC's Loan/SERV reconciliation service and begin to offer it in the first half of 2012. The partnership will also develop bilateral loan services, which will build on DTCC's existing platform and integrate with Clearstream's collateral management platform.
DTCC’s Loan/SERV reconciliation service automates the reconciliation process and enables agent banks and lenders to view and reconcile syndicated loans on a daily basis. DTCC and Clearstream will
distribute the Loan/SERV Reconciliation Service to existing and prospective clients across Europe, the Middle East, Africa and Asia.
In addition to supporting syndicated loans, DTCC and Clearstream will enhance the Loan/SERV reconciliation service to support the processing of European bilateral loans in early 2012.
Jeffrey Tessler, CEO, Clearstream, said: “We are pleased to cover a new asset class with our services and create a new market infrastructure for loans. We are looking forward to partnering with DTCC and to be able to draw on DTCC’s experience of the syndicated loan market."
By integrating Loan/SERV’s upcoming bilateral loan module with Clearstream’s collateral management platform, Clearstream clients will be able to better mobilise their bilateral loan portfolios as collateral with their respective national central banks and will extend the potential types of assets to be used as collateral in interbank tri-party transactions, according to the long-standing recommendation of the ICMA European Repo Council (ERC), writes Clearstream.
