BNY Mellon Automates Loan Documentation Process

BNY Mellon is introducing a service that will enable investment managers to automatically transmit loan trade documents to the custodian through secure online channels.

The service will replace a manual process, which currently requires investment managers to email or fax all documents related to loan trades to BNY Mellon, in its capacity as trustee and collateral administrator.

Documents affected by this change, which is scheduled to launch in early April, will include assignment agreements, transfer certificates and funding memos.

This service will notify BNY Mellon, as documents are executed on ClearPar, enabling the company to begin processing trades earlier in their lifecycle. It is designed so that BNY Mellon’s records remain aligned with clients’ records.

Additional documents that can be transmitted, for both Loan Syndication and Trading Association, and Loan Market Association trades include trade confirmations, purchase and sale agreements, and netting agreements.

“The new service will benefit investment managers using Markit’s ClearPar trade settlement system, as it significantly improves the ease of doing business with us on a daily basis. By working with our investment manager clients to adopt this service, information can be transmitted automatically for all loans served by BNY Mellon as custodian, trustee and administrator,” says Eric Kamback, CEO of Corporate Trust at BNY Mellon.