SunGard's Loanet Adds Order Management Service

SunGard’s Loanet has added a new order management service to automate securities finance transactions.

“The order management system is really designed to try to eliminate some of the inefficiencies between customers when they’re trying to borrow or lend securities,” says Dan Belluche, senior vice president and general manager, SunGard’s Loanet.

As opposed to the typical use of instant messaging and email between borrowers and lenders to set trades, as well as booking in separate systems from the borrower and lender, the new platform will centralize communication and allow booking to take place in one system.

“Once the borrower selects the security they want to borrow, we handle the communication in booking the transaction…it leverages our existing functionality that we already provide,” explains Belluche.

Orders can then be directed either to lenders in a bilateral trade or to an exchange platform (AQS) using straight-through processing to automate contract booking and settlement at DTCC. Borrows can also see rate information through the platform if the lenders allow that.

“The lack of automation and straight-through processing can create unnecessary costs, risks and inefficiencies to the securities finance industry. Loanet’s centralized order management service improves the utilization of securities, increases transparency on supply, and maximizes loan rates on the most sought-after securities,” says John Grimaldi, executive vice president, SunGard’s North American securities operations and securities finance.

“Central order systems for securities lending are the next phase of efficient loan management,” says Josh Galper, managing principal, Finadium. “As financial regulations and a changing marketplace make lending more competitive, an optimal technology solution is a must-have to help increase productivity, manage costs and improve operations.”