Deep integration with IHS Markit’s platform ClearPar has enabled automation of the full trade settlement lifecycle for syndicated loans, says global custodian Northern Trust.
According to a Northern Trust press release, the solution utilizes a capability on ClearPar called Custodian Services Messaging. This enables the exchange of key transaction data on syndicated loans in a standardized format, via secured communications. The format includes data such as the settlement date, settlement amounts and wire instructions.
“Syndicated loans are an increasingly important asset class for our institutional investors and family offices seeking higher yields. Integration with trade platforms such as ClearPar removes the potential for latency in the process and demonstrates our commitment to delivering timely and accurate daily data to our clients across the globe,” says Pete Cherecwich, president of corporate and institutional services at Northern Trust.
In June 2019, business intelligence provider IHS Markit announced that it had onboarded JP Morgan Securities Services and Blackrock as its first clients to its Custodian Services Messaging capability.