Overview

SMART/Track for Stock Loan Recalls provides a central communications hub for the transmission of stock loan recall messages between counterparties. SMART/Track essentially acts as a "post office" for transmitting stock loan recalls between lenders and borrowers. Lenders and borrowers can either connect directly to SMART/Track for Stock Loan Recalls or connect via a vendor relationship.

Who Can Use the Service

The service is currently available for use by any existing NSCC clearing firm or DTC settling member. It is also available to non-members.

Benefits

SMART/Track for Stock Loan Recalls, as an industry hub, centralizes the process for transmitting stock loan recalls between lenders and borrowers. By providing a single point of access to all parties, SMART/Track ensures that lenders, borrowers or vendors do not have to build bilateral links to their counterparties to transmit stock loan recalls.

SMART/Track for Stock Loan Recall promotes STP and offers a number of efficiencies over manual processing:

• Eliminates manual processing thereby increasing efficiency and reducing operational costs and the risks inherent in manual processing.
• Provides a single point of entry for all participants.
• Establishes standards for communicating information.
• Manages message delivery risk.
• Uses globally recognized messaging standards – ISO 15022 – when applicable.

How the Service Works

Participants can either connect directly to SMART/Track for Stock Loan Recalls or connect via a vendor relationship. Non-members must connect directly to SMART/Track. Once connected, participants transmit ISO 15022 messages for stock loan recalls to SMART/Track via MQSeries or DTC's standard file transfer capabilities – Connect:Direct (formerly Network Data Mover or NDM) and File Transfer Protocol (FTP). Once received, SMART/Track reviews certain data to ensure that it can successfully deliver the recall message to the designated counterparty. It does not edit or validate the recall data contained in the message.

Participants using the same vendor technology platform – currently, SunGard or EquiLend – transmit information directly from one another across the vendor's platform. SMART/Track serves as a communications hub providing interoperability between counterparties for participants that are on different vendor platforms or are connecting directly to SMART/Track by routing the stock loan recalls to the appropriate counterparty.

SMART/Track provides acknowledgments/receipts for stock loan recall messages transmitted. SMART/Track creates an acknowledgment/receipt record for each message processed to notify the sender that it has received the message and that it has made the recall message available to the receiver. SMART/Track also creates a receipt record for the sender when the counterparty has retrieved the stock loan recall message. Each stock loan recall message is assigned an internal control number for audit trail purposes so that the delivery of the information can be traced if necessary. If SMART/Track cannot deliver the stock loan recall message, it will reject the message back to the sender for resolution.

SMART/Track creates a participant eligibility file every evening. Participants can retrieve this file so that they know which firms are eligible for the service. SMART/Track rejects recall notices to counterparties that do not subscribe to SMART/Track for Stock Loan Recalls.

Transmitting Recalls Directly to SMART/Track

Participants who want to send stock loan recall messages directly to SMART/Track must establish connectivity to DTC if they do not already connect for other products and services. Connectivity is established through DTCC's Participant Interface Planning group.

Transmitting Recalls Through a Vendor

Participants using a vendor must provide DTC with a third-party authorization letter that identifies the vendor so that DTC can set the participant up in SMART/Track with the appropriate vendor relationship.

For More Information

Please call Relationship Management at 888-382-2721.