Northern Trust announced it has automated processing of the full trade settlement lifecycle for syndicated bank loans through integration with IHS Markit’s ClearPar Custodian Services Messaging capability. Designed to deliver trade data in a standardized format via secured communications, this service increases scalability and efficiency while reducing the risks inherent in a manual trade settlement process.

The new solution enables Northern Trust to map critical trade and funding information seamlessly into its proprietary bank loan servicing platform, thereby providing digital access to all parties in a transaction. Key transaction data, including settlement date, settlement amounts and wire instructions is streamlined and communicated electronically, allowing Northern Trust to seamlessly accommodate the triple digit trade volume increase it has experienced in the last five years.

“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,” said Pete Cherecwich, President of Corporate and Institutional Services, Northern Trust. “Our work with IHS Markit to automate trade and payment information not only drives efficiency but enhances risk management. This integration raises the bar in complex asset processing – it is a major advance for Northern Trust and the syndicated loans market and will deliver tangible benefits to our clients.”

“Northern Trust has achieved a unique level of custodian integration with ClearPar,” said Patricia Tessier, managing director and co-head of Loan Platforms at IHS Markit. “The new levels of service and scale Northern Trust can deliver to clients are illustrations of how technology is transforming the full operational life cycle in the leveraged loan market, from trade closing to portfolio management to asset servicing.”

Source: Northern Trust