SunGard’s Loanet, a suite of software solutions designed for the US and Canadian securities finance industry, has expanded with the launch of an order management service to help borrowers and lenders increase automation and boost productivity of their trading businesses.
The company said that as daily communication between lenders and borrowers can be inefficient with information flowing via telephone, instant messaging (IM), e-mail, or through spreadsheets, Loanet’s order management service helps centralise and automate this process. Borrowers will be able to combine real-time lender inventory with additional inventory sources in an automated, central system.
The service gathers availability information from numerous lenders to allow borrowers to fill an order and then automates settlement, so manual entries are unnecessary. Orders can be directed either to lenders in a bilateral trade or to an exchange platform (AQS). The straight-through processing (STP) service automates contract booking and settlement at the Depository Trust & Clearing Corporation (DTCC).
“Central order systems for securities lending are the next phase of efficient loan management,” commented Josh Galper, managing principal at financial markets research and consulting firm Finadium. “As financial regulations and a changing marketplace make lending more competitive, an optimal technology solution is a must-have to help increase productivity, manage costs and improve operations.”
John Grimaldi, executive vice president (EVP), SunGard’s North American securities operations and securities finance added: “The lack of automation and STP can create unnecessary costs, risks and inefficiencies to the securities finance industry. Loanet’s centralised order management service improves the utilisation of securities, increases transparency on supply, and maximises loan rates on the most sought-after securities.”
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