IHS Markit Securities Finance announced the addition of a Compliance Check Tool which enables beneficial owners to independently monitor lending parameters. The tool analyzes trading data to identify any exceptions that are in potential breach, providing time efficiencies and detailed areas of focus which allow firms to quickly identify risk and resolve any issues.
“This is a new, innovative tool for lenders such as pension funds, mutual funds and sovereign wealth funds to monitor and validate the compliance of lending activity to their agreed parameters,” said Kabin George, executive director and head of Securities Finance Product Management at IHS Markit, adding that the tool follows best execution functionality released at the end of 2020.
Based on the parameters set, exceptions can be reported at the transaction level, instrument level and counterpart level, with a summary of alerts available for customization.
The Compliance Check Tool can be tailored to the following lending parameters:
- Market/Asset Class
- Individual Instruments
- Limits on Loans, Lendable and Utilization
- Liquidity Levels Against Market Date
- Trade/Collateral Type
- Credit Consensus (requires separate permission)