Northern Trust Fully Automates Complex Syndicated Bank Loan Trade Process

Driving scalability, efficiency and reducing risk

CHICAGO--(BUSINESS WIRE)--Northern Trust (Nasdaq: NTRS) today announced it has automated processing of the full trade settlement lifecycle for syndicated bank loans through integration with IHS Markit’s ClearPar Custodian Services Messaging capability. Designed to deliver trade data in a standardized format via secured communications, this service increases scalability and efficiency while reducing the risks inherent in a manual trade settlement process.

The new solution enables Northern Trust to map critical trade and funding information seamlessly into its proprietary bank loan servicing platform, thereby providing digital access to all parties in a transaction. Key transaction data, including settlement date, settlement amounts and wire instructions is streamlined and communicated electronically, allowing Northern Trust to seamlessly accommodate the triple digit trade volume increase it has experienced in the last five years.

“Syndicated loans are an increasingly important asset class for our institutional investors and family offices seeking higher yields. Integration with trade platforms such as ClearPar removes the potential for latency in the process and demonstrates our commitment to delivering timely and accurate daily data to our clients across the globe,” said Pete Cherecwich, President of Corporate and Institutional Services, Northern Trust. “Our work with IHS Markit to automate trade and payment information not only drives efficiency but enhances risk management. This integration raises the bar in complex asset processing – it is a major advance for Northern Trust and the syndicated loans market and will deliver tangible benefits to our clients.”

“Northern Trust has achieved a unique level of custodian integration with ClearPar,” said Patricia Tessier, managing director and co-head of Loan Platforms at IHS Markit. “The new levels of service and scale Northern Trust can deliver to clients are illustrations of how technology is transforming the full operational life cycle in the leveraged loan market, from trade closing to portfolio management to asset servicing.”

About Northern Trust

Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of wealth management, asset servicing, asset management and banking to corporations, institutions, affluent families and individuals. Founded in Chicago in 1889, Northern Trust has a global presence with offices in 21 U.S. states and Washington, D.C., and across 23 locations in Canada, Europe, the Middle East and the Asia-Pacific region. As of December 31, 2019, Northern Trust had assets under custody/administration of US $12.1 trillion, and assets under management of US $1.2 trillion. For more than 130 years, Northern Trust has earned distinction as an industry leader for exceptional service, financial expertise, integrity and innovation. Visit northerntrust.com or follow us on Twitter @NorthernTrust.

Northern Trust Corporation, Head Office: 50 South La Salle Street, Chicago, Illinois 60603 U.S.A., incorporated with limited liability in the U.S. Global legal and regulatory information can be found at https://www.northerntrust.com/united-states/terms-and-conditions.