Depository Trust & Clearing to add cash settlement to Loan/SERV

By Sara Rosenberg

New York, June 16 - Depository Trust & Clearing Corp. is planning to add cash settlement capabilities, including delivery versus payment, to its Loan/SERV suite of services, according to a news release.

A timetable for testing and production of the new settlement system will be issued in the third quarter.

"Delivery versus payment will provide certainty to loan traders that cash settles simultaneously with changes to asset ownership recorded by the agent banks," said Chris Childs, vice president, global loans product management, in the release.

"By providing a [delivery versus payment] capability, Loan/SERV will dramatically reduce risk and provide greater certainty in the syndicated loan market," Childs added in the release.

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