LDB Consulting: Stock Borrow/Loan System Overview

Stock Borrow/Loan System Overview

The Stock Borrow/Loan System (SBL) is compliant with the Agent Lending Disclosure Initiative. SBL reads DTCC Cash and Non Cash files as well as user provided borrow/loan data (Internal Files) from users' current systems such as LOANET, Global 1, ICI and/or proprietary. SBL calculates 15c3-3 stock loan and 15c3-1 borrow/loan charges.

The system calculates capital charges and provides reports to assist in both reconciliation and credit monitoring. Reports may be produced in PDF format and users can select work files to export into CSV files for later in-house manipulation.

1) Capital Charge Computations

Import a user supplied market price file to price Unpriced Agent loans and collateral securities.

Generate a detailed charge report by counter party within agent (or across agents at user's discretion).

Generate summary reports for 15c3-3 stock loan and 15c3-1 borrow/loan charges.

2) Reconciliation

Verify that cash collateral on Type 2 DTCC records equals cash collateral shown on Type 1 DTCC records.

Report disconnects between DTCC collateral and market value and those same values presented in the Internal Files at agent or agent/cusip level.

Compare each day's DTCC file to the prior day's DTCC data and report new loans, closed loans and cures.

3) Exposure monitoring

Import exposure limits by counter party and by cusip.

Generate reports showing which counter parties/cusips have exceeded those limits, are within a user specified tolerance of the limits (an early warning system) or have NO ENTRY in the exposure file.

4)General

Permit the user to manually enter modifications to the borrow/loan data.

Retain all data in a history file with the ability to purge oldest data.

Allow the creation of consolidated counter parties for reporting purposes.

If ADOBE Acrobat version 6.0 or later is installed, PDF reports may be created and they will be backed up to the Backup Directory.