SMART/Track provides a centralized communications hub for the transmission of various message types between participants. DTCC currently offers four SMART/Track services:
- Agency Lending Disclosure: transmits open loan data between lenders and borrowers.
- Buy-Ins: tracks the status of buy-in notices and Municipal Securities Rulemaking Board (MSRB) closeouts between participants.
- Corporate Action: tracks liability notifications between participants on voluntary action events.
- Stock Loan Recall Messaging: transmits stock loan recall messages between counterparties.
SMART/Track for Agency Lending Disclosure provides a central communications hub for the transmission of open loan data between agent lenders and borrowers on a daily and periodic basis.
Agent lenders and borrowers are required to disclose data about open loans for credit monitoring and capital requirement purposes. DTCC developed this service at the request of the securities lending community to help address regulatory requirements regarding transparency in securities lending transactions.
SMART/Track facilitates the disclosure between agent lenders and borrowers of loan data including:
- Periodic data files that enable borrowers to do a credit pre-qualification of principal lenders they choose to borrow from.
- Daily open loan files that enable borrowers to analyze their capital requirements and to adjust, if necessary, any collateral posted for securities borrowed.
In addition to supporting the transmission of periodic and daily loan files between agent lenders and borrowers, SMART/Track also provides a Web application that enables agent lenders to request the creation of unique identification numbers for principal lenders that do not have U.S. tax identification numbers. Participants can also view the status of file transmissions from the Web application.
Who Can Use the Service
Any NSCC full service clearing member, DTC client, or member of the International Securities Lending Association (ISLA).
SMART/Track for Agency Lending Disclosure centralizes the process for transmitting open loan data between agent lenders and borrowers. By providing a single point of access, SMART/Track ensures that no party – whether an agent lender, borrower or vendor – has to build bilateral links to its counterparties to transmit loan information. In its role as a communications hub, SMART/Track:
- Notifies the sender that it has received the file and made the file available to the receiver.
- Creates a receipt record for the sender or generates an error code if it cannot deliver the file.
- Provides a Web screen for agent lenders, borrowers and vendors to browse the status of files being processed and request the creation of unique identifiers for principal lenders.
How the Service Works
SMART/Track acts as a “post office” for agency lending disclosure, transmitting open loan data files between agent lenders and borrowers. Agent lenders and borrowers can connect to SMART/Track for Agency Lending Disclosure directly or via a vendor relationship. Non-members must connect directly to SMART/Track.
Agent lenders and borrowers using the same vendor technology platform – currently, SunGard or EquiLend – transmit information directly from one to another across the vendor’s platform. SMART/Track serves as a communications hub providing interoperability between counterparties for lenders and borrowers that are on different vendor platforms or are connecting directly to SMART/Track by routing the files to the appropriate counterparty.
SMART/Track reviews the header and trailer information on the files to ensure it can successfully deliver the files to the designated counterparty and to verify that the file contains the number of records indicated. Because it lacks the ability to read the data records contained in the files, SMART/Track does not edit or validate the file data.
Agent lenders, borrowers or vendors can send files via DTC’s standard file transfer capabilities – Connect: Direct (formerly Network Data Mover or NDM) or File Transfer Protocol (FTP). Those agent lenders and borrowers that do not have connectivity to DTC can send files via the Internet using FTP.
SMART/Track creates a participant eligibility file every evening. Participants can retrieve this file to see which firms are eligible for the service. SMART/Track rejects agency lending files to counterparties that do not subscribe to SMART/Track for Agency Lending Disclosure.
Transmitting files directly to SMART/Track
To send loan files directly to SMART/Track, participants 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 at firstname.lastname@example.org.
Transmitting files through a vendor
Participants using a vendor must provide DTC with a third-party authorization letter so that DTC can set up the participant in SMART/Track with the appropriate vendor relationship.
For More Information
To request additional information, please click here.