DTCC, through its Loan/SERV suite of services, continues to build and expand the global infrastructure needed to support the syndicated loan market. By leveraging its vast experience in processing bonds, equities and OTC derivatives, DTCC, with its “at-cost” industry-owned governing structure, remains committed to delivering cost-effective solutions that reduce risk, boost efficiencies, improve transparency and enable the syndicated loan market to develop and grow in a rapidly changing financial and regulatory environment.

DTCC's Loan/SERV addresses the important issues facing the syndicated loan market, including:

Adoption of standard identifiers

Loan/SERV's global platform is driving the adoption of market standard identifiers across:

• Facilities
• Contracts
• Market participants

Position recordkeeping and "Cash Break" resolutions

Loan/SERV Reconciliation is dramatically improving position recordkeeping by providing real-time reconciliation services at the:

• Committed Balance level
• Transaction level
• Contract level information

Electronic communication

Loan/SERV Messaging allows for the gradual replacement of faxes by providing full electronic messaging via FpML with:

• Guaranteed instant message delivery
• Online viewing, storing, routing and retrieval
• Full audit trail
• Automatic third party routing to operations outsourcers, custodians and trustees

Additional Loan/SERV benefits that will be available in the near future are:

• Cash settlement in multiple currencies around the globe
• Delivery versus Payment (DvP)
• Netting of payments daily across the loan market.

DTCC's Loan/SERV introduced two services in 2008, with both showing dramatic growth in the number of agents, customers and loan positions in a short period.

More than 2,200 Fund/lenders have signed on to Loan/SERV.

Fund Count

Loan/SERV Reconciliation Service

Loan/SERV Reconciliation Service enables agents to reconcile lender positions on individual loans every day, helping reduce "cash breaks" as well as the number of unsettled loans. This service went live in September 2008 and global loan positions posted and updated nightly were nearly 175,000 in May, 2010.

Position Count

Loan/SERV Messaging Service

Loan/SERV Messaging Service, launched in the fourth quarter of 2008, provides an automated, secure communication network hub through which agent banks can transmit standard loan messages to both lenders and borrowers. The service hub will route messages according to the recipient’s predetermined instructions, either directly into their processing system or by displaying the messages via a Web interface based on user-defined workflow rules.

Loan/SERV's Operations and Planning Committee is comprised of representatives from six leading agent banks and helps guide Loan/SERV's development strategy and agenda.

For More Information on Loan/SERV

North America: Dave Perry, +1 212.855.2345 dperry1@dtcc.com
Eugene Kotlyarevskiy, +1 212.855.5689 ekotlyarevskiy@dtcc.com

Europe, the Middle East, Africa or Asia: Rita Virdee, +44 (0) 207.650.1425
RVirdee@dtcc.com.

Loan/SERV is a service offering of DTCC Loan/SERV LLC, a wholly-owned subsidiary of DTCC.