DTCC and Markit launch service protecting loan sellers

08/18/2011 | Bloomberg Businessweek

The Depository Trust & Clearing Corp. and Markit Group are offering to simultaneously clear and settle loan trades, a service that protects loan sellers by paying them as soon as legal ownership of a debt is transferred to the buyer. "The primary focus is risk mitigation for the settlement process by introducing a delivery-versus-payment mechanism for syndicated loans," said Mathew Keshav Lewis, a vice president of DTCC. "This asset class has always lacked a centralized infrastructure; it will have knock-on effect on how investors and lenders view this market."

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