SMART/Track for Agency Lending Disclosure provides a central communications hub for the transmission of open loan data between agent lenders and borrowers on a daily and periodic basis. DTCC developed this service at the request of the securities lending community to help address regulatory requirements regarding transparency in securities lending transactions.

Overview

SMART/Track for Agency Lending Disclosure provides a central communications hub for the transmission of open loan data between agent lenders and borrowers on a daily and periodic basis.  DTCC developed this service at the request of the securities lending community to help address regulatory requirements regarding transparency in securities lending transactions.  

Agent lenders and borrowers are required to disclose data about open loans for credit monitoring and capital requirement purposes. SMART/Track facilitates the disclosure of loan data between agent lenders and borrowers including:

• Periodic data files that enable borrowers to do a credit pre-qualification of principal lenders they choose to borrow from; and
• Daily open loan files that enable borrowers to analyze their capital requirements and to adjust, if necessary, any collateral posted for securities borrowed.

Agent lenders and borrowers can either connect directly to SMART/Track for Agency Lending Disclosure or connect through a vendor.

In addition to supporting the transmission of periodic and daily loan files between agent lenders and borrowers, SMART/Track also provides a web application that enables agent lenders to request the creation of unique identification numbers for principal lenders that do not have U.S. tax identification numbers.  Participants can also view the status of file transmissions from the web application.

Who Can Use the Service

The service is currently available for use by any existing NSCC clearing firm or DTC settling member.  It is also available to non-members.

Benefits

SMART/Track for Agency Lending Disclosure, as an industry hub, centralizes the process for transmitting open loan data between agent lenders and borrowers.  By providing a single point of access to all parties, SMART/Track ensures that agent lenders, borrowers or vendors do not have to build bilateral links to their counterparties to transmit loan information.  In its role as a communications hub, SMART/Track:

• Notifies the sender that it has received the file and that it has made the file available to the receiver.
• Creates a receipt record for the sender or generates an error code if it cannot deliver the file.
• Provides a Web screen for agent lenders, borrowers and vendors to browse the status of files being processed and to request the creation of unique identifiers for principal lenders.

How the Service Works

SMART/Track essentially acts as a “post office” for agency lending disclosure, transmitting open loan data files between agent lenders and borrowers.  Agent lenders and borrowers can either connect directly to SMART/Track for Agency Lending Disclosure or connect via a vendor relationship.  Non-members must connect directly to SMART/Track.

Agent lenders and borrowers using the same vendor technology platform – currently, Loanet or EquiLend - transmit information directly from one to another across the vendor’s platform. SMART/Track serves as a communications hub providing inter-operability between counterparties for lenders and borrowers that are on different vendor platforms or are connecting directly to SMART/Track by routing the files to the appropriate counterparty. 

SMART/Track reviews the header and trailer information on the files to ensure that it can successfully deliver the files to the designated counterparty and to verify that the file contains the number of records indicated.  SMART/Track does not edit or validate the data contained in the files:  It does not have the ability to read the data records contained in the files.

Agent lenders, borrowers or vendors can send files via DTC’s standard file transfer capabilities:  Connect:Direct (formerly Network Data Mover or NDM) or File Transfer Protocol (FTP).  Those agent lenders and borrowers that do not have connectivity to DTC can send files via the internet using FTP.

Transmitting files directly to SMART/Track
Participants that want to send loan files directly to SMART/Track must establish connectivity to DTC if they do not already connect for other products and services.  Connectivity is established through DTCC’s Participant Interface Planning group.

Transmitting files through a vendor
Participants using a vendor must provide DTC with a third-party authorization letter that identifies the vendor so that DTC can set the participant up in SMART/Track with the appropriate vendor relationship. 

For More Information

Please call Relationship Management at 1 888.382.2721.