About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

DTCC’s Loan/SERV Adopts Markit’s New Entity Identifier System

Subscribe to our newsletter

The Depository Trust & Clearing Corporation (DTCC) has adopted Markit’s new entity identifier system for loans processed by its suite of services for the syndicated loan market, Loan/SERV. According to DTCC, the collaboration between the two vendors is aimed at reducing operational risks within the processing of syndicated loans by the introduction of standard, unique entity identifiers.

Chris Childs, DTCC vice president of Global Loans Product Management, explains that rationale behind the move: “A readily available and uniform identifier scheme is central to the provision of our automated services. We believe that Markit’s entity identifiers will help the market move to standardisation.”

The vendor claims the addition of these identifiers will enhance the accuracy and efficiency of its service. It hopes that because Markit’s entity identifiers undergo a stringent validation process prior to loan issuance, use of the identifiers will enable Loan/SERV to perform position reconciliations using verified entities. Prior to this, obtaining reconciliation information from the agent banks was a complicated, manual process, says DTCC.

According to DTCC, its users are happy with the addition of these identifiers. Marc Romain, managing director of Barclays Capital, highlights the user perspective: “Collaboration is the key to bringing change to the loan market. The use of Markit’s identifiers with DTCC’s services brings together two foundational components of a universal identification system for the loan market.”

The Loan/SERV Reconciliation Service and Loan/SERV Messaging Service, launched in fourth quarter of last year, both rely on the use of standard identifiers to define specific loans and market participants.

Markit introduced loan entity identifiers last year as part of a broad identification system for the loan market. Working in collaboration with Standard & Poor’s and Cusip Global Services, Markit issued the first validated entity identifiers in early 2009.

The issue of a lack of standard entity identifiers has long been bemoaned by the industry at large and although this agreement only covers a small part of the financial market, it is a step in the right direction towards collaborative progress towards standardisation. Lack of clarity around entity identification and counterparty data have been blamed for contributing to the financial crisis and the confusion following the fall of institutions such as Lehman Brothers last year.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: How to automate entity data management and due diligence to ensure efficiency, accuracy and compliance

Requesting, gathering, analysing and monitoring customer, vendor and partner entity data is time consuming, and often a tedious manual process. This can slow down customer relationships and expose financial institutions to risk from inaccurate, incomplete or outdated data – but there are solutions to these problems. This webinar will consider the challenges of sourcing and...

BLOG

Entrust in Talks to Acquire AI-Powered Identity Verification Specialist Onfido

Entrust, a provider of trusted identities, payments, and data security, is in exclusive discussions to acquire London-based Onfido, a provider of cloud-based, AI-powered identity verification (IDV) technology. If the acquisition completes, Entrust would add a compliant AI/ML-based biometric and document IDV tech stack to its portfolio of identity solutions. It would also have an opportunity...

EVENT

RegTech Summit New York

Now in its 8th year, the RegTech Summit in New York will bring together the regtech ecosystem to explore how the North American capital markets financial industry can leverage technology to drive innovation, cut costs and support regulatory change.

GUIDE

Entity Data Management Handbook – Seventh Edition

Sourcing entity data and ensuring efficient and effective entity data management is a challenge for many financial institutions as volumes of data rise, more regulations require entity data in reporting, and the fight again financial crime is escalated by bad actors using increasingly sophisticated techniques to attack processes and systems. That said, based on best...