Ahead of the securities settlement cycle in North America shortening to T+1, Brown Brothers Harriman (BBH) Global Securities Lending announced it’s launched Pirum’s automated Recalls Manager solution to reduce securities lending fails, penalties and overdraft costs, while increasing operational efficiency. The custodian/administrator has previously automated other aspects of the post-trade lifecycle with Pirum’s Trade Risk Manager and Corporate Actions solutions.
BBH adopted the Recalls Manager solution in an effort to reduce securities lending fails and leverage automation and real-time coverage, to promote a smooth transition to the shortened T+1 settlement cycle. Covering the full global post-trade lifecycle from issuance to closure, the benefits of the plug-and-play Recalls Manager solution can be expected to: reduce fails, CSDR penalties and overdraft costs, as well as operational costs; mitigate buy-in risks, increase trading desk capacity as well as control and oversight.
“Straight Through Processing (STP) across the full recall lifecycle is an important risk mitigant prior to North American markets moving to a T+1 settlement cycle in May. Expanding our capabilities in this area, and all post-trade processing, reduces operational friction with our borrowers, and allows us to better service our clients by reducing disruption to regular portfolio management activity,” said Sarah Holmes, BBH principal and global head of Securities Lending, in a statement.
Jacob Koopmans, chief revenue officer at Pirum, said in a statement: “By rolling out Recalls Manager well ahead of the incoming regulatory shift, BBH has yet again achieved a smooth continuation of its best-in-class client services and enhanced risk management oversight. In addition, BBH has freed up time and resources, which it can now redeploy to deliver even more value to its clients.”