DTCC Connection

Apr 01, 2011 • DTCC Connection

Wells Fargo Links To DTCC’S Loan/SERV Reconciliation Service

by Edward C. Kelleher


  Peter Amendola, executive vice president, Wells Wholesale Banking

Wells Fargo Bank has linked to DTCC’s Loan/SERV Reconciliation Service, which helps automate and streamline the processing of syndicated loans by enabling the bank to view and reconcile loan positions with thousands of lenders on a daily basis.


“As our loan business continues to grow globally, the need for an automated reconciliation service to provide our customers with the most accurate and up-to-date information available on their loan positions becomes paramount,” said Peter Amendola, executive vice president, Wells Fargo Wholesale Banking. “Loan/SERV provides us with the solution that will automate the reconciliation process, boost efficiencies and help reduce risk in the market.”


Global banks

“Wells Fargo is joining the leading global banks that have linked to Loan/SERV Reconciliation to boost customer satisfaction, improve market-wide data accuracy and increase operational efficiency,” said Mathew Keshav Lewis, DTCC vice president, Global Loans Product Management. “Loan/SERV is the only service that provides a global reconciliation solution for the syndicated loan market and now serves lenders in more than 45 countries across North America, Latin America, Europe, Asia and Africa.”


Agent banks already linked to Loan/SERV’s Reconciliation Service are The Bank of New York Mellon, Barclays Capital, Citi, Credit Suisse, Deutsche Bank, Goldman Sachs, J.P. Morgan and The Royal Bank of Scotland.


No more thousands of faxes

Syndicated loans involve multiple lenders for each borrower, with agent banks acting as the liaison, transmitting information among parties. Prior to the launch of Loan/SERV, the reconciliation process was essentially manual and resulted in thousands of faxes going out into the market each month. Loan/SERV automates the process and enables agent banks and lenders to view and reconcile loans on a position basis or in more detail, ranging from the commitment and transaction level down to the individual contracts, drawings and fees, with all relevant transactions details.


Along with the agent banks, more than 2,800 investment funds and lending entities administered by more than 250 leading fund managers and bank lenders have linked to the reconciliation service since DTCC launched Loan/SERV in 2008. These firms now represent approximately 50% of the global syndicated loan market.


On deck: delivery-versus-payment

DTCC, working with a third-party cash settlement provider, will begin piloting a cash settlement service in the second quarter of 2011 called Cash on Transfer with a number of global loan agents, trading desks, paying agents, custodians and administrators. Cash on Transfer will provide the global syndicated loan market with its first delivery-versus-payment platform for secondary loan trading. It will help ensure that cash settles simul-taneously with the change in legal ownership of the asset recorded by the agent bank. It will handle cash settlement in 50 different currencies.


Loan/SERV is a service offering of DTCC Loan/SERV LLC, a subsidiary of DTCC. @


dtccdotcom