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DTCC and Markit Launch First DVP Service For Syndicated Loan Market

When DTCC announced that its Loan/SERV Cash on Transfer service went live in August, the media immediately picked up the story with Bloomberg, Reuters and a host of online publications running articles on the new service.

Bloomberg BusinessWeek ran two articles with one quoting Mathew Keshav Lewis, DTCC vice president, Global Loans Product Management. "The primary focus is risk mitigation for the settlement process by introducing a delivery-versus-payment mechanism for syndicated loans," Lewis said. "This asset class has always lacked a centralized infrastructure; it will have a knock-on effect on how investors and lenders view this market."

Reuters reported that, "Cash on Transfer is designed to attract new institutional investors such as pension funds to the secondary market, which have previously been deterred by the lack of liquidity and transparency surrounding European loan trading and settlement. The system will also improve cash utilization and allocation and will reduce financial institutions funding costs..."

Other articles appeared in Banking Business Review, EuroWeek, Leveraged Finance News, CreditFlux, finextra and