Overview

SMART/Track for Stock Loan Recalls provides a messaging capability for communicating stock loan recalls between counterparties.

The Securities Industry and Financial Markets Association (SIFMA) STP Securities Lending Subcommittee recommended the development of Automated Recall Management Systems (ARMS) to eliminate the manual processing of stock loan recalls. As a result of this recommendation, several vendors have developed ARMS.

SMART/Track enables ARMS vendors to send a stock loan recall via MQ message from a customer to a counterparty using a different ARMS vendor system. SMART/Track, however, is not limited to providing interoperability between ARMS users.

Who can use the service

Through SMART/Track, a user that has its own automated stock loan recall notification capability can communicate a stock loan recall via MQ message (or FTP or NDM) directly with a counterparty that uses a vendor or has its own recall notification capability.

SMART/Track does not provide any tracking capability for the stock loan recall application; however, it does provide acknowledgments/receipts for messages transmitted.

Benefits

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 any paper process;
• Provides a single point of entry for all participants thereby replacing the "spaghetti" environment of multiple connections to multiple parties;
• Establishes standards for communicating information so that all parties are basically speaking the same language;
• Manages message delivery risk through the generation of acknowledgments to indicate that the information has been sent/received and provides an audit trail so that the delivery of the information can be traced if necessary; and 
• Uses globally recognized messaging standards - ISO 15022 - when applicable. (The ISO 15022 messages used in recalling stock loans include:  MT520, 521, 522 and 509.)

How the service works