Markit Develops Online Tool To ID Loans
October 9, 2008
Markit will introduce an online loan identification tool for market participants to track information such as price talk and ratings by the end of the year.
Just like a social security number or driver’s license number, each loan and each participant in that loan, including lenders and borrowers, with be given identification numbers.
This is designed to help improve accuracy and operational efficiency by ensuring that information is linked to the correct underlying loan and delivered to the right market participant.
“Having the correct data on the underlying loans definitely improves the overall decision-making for portfolio managers and traders, Anthony Clemente, CEO of Canaras Capital Management, said in a release from Markit.
Currently, financial information is transmitted, faxed or phoned in, resulting in operational inefficiency and errors. The loan information will be mapped to other Markit online tools such as Markit RED, which tracks information on synthetic deals like credit default swaps.
“This marks an important step in our drive to improve efficiency, transparency and straight-through processing within the loan industry,” Armins Rusis, executive v.p. and global co-head of fixed income at Markit, said in the release.
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