Citi and JPMorgan Chase Bank, N.A. are first administrative agents to transmit loan data to Markit via FpML
London and New York, NY – Markit, a leading, global financial information services company, today announced that its loan messaging hub is now receiving notices under syndicated credit agreements via Financial products Markup Language (FpML), the new standard for electronic data exchange for the financial industry. Citi and JPMorgan Chase Bank, N.A. are the first administrative agent banks to migrate from testing to implementing a system to deliver loan notices to Markit using FpML.
FpML replaces faxes as the means of transmitting information required by syndicated credit agreements, such as interest payments, paydowns, rollovers of interest rates, and rate-sets with an electronic data stream that enables lenders’ portfolios to be updated in real time. For lenders who are not currently able to accept FpML data feeds, Markit makes the information available at www.wsodata.com.
The Markit loan messaging hub, part of Markit’s set of services for firms active in syndicated commercial lending, receives approximately seven million notices from agent banks by fax, email and FpML each year. Each notice is electronically routed by Markit to lenders of record of the loan, and more than half are delivered by Markit directly into customers’ systems. By converting faxes into electronic messages, Markit helps the industry reduce manual processes and errors in updating portfolio information, giving lenders an accurate view of their loan assets. It also saves approximately 17 million pieces of paper annually.
Atilla Karasapan, Global Loan & Credit Risk Operations Managing Director at Citi, said: “Migrating to FpML for transmitting agent notices streamlines our operations, makes sense from an environmental standpoint and helps the lenders we serve. Considering our scale, moving to an entirely electronic environment for notices is a major advance.”
Michael Ambler, Global Head of Loan Operations, Executive Director at JPMorgan Chase Bank, N.A., said: “We are proud to be at the forefront of electronic initiatives for syndicated lending facilities. Using FpML to transmit notices under credit facilities makes JPMorgan Chase Bank, N.A., when acting as administrative agent, and the lenders in the facility with which we interact, more efficient. Our goal is to use a spectrum of technology to make the administrative aspects of syndicated credit facilities more efficient.”
Alice Taormina, Senior Vice President at GSO Capital Partners, said: “The ability to receive notifications related to syndicated loans electronically via FpML marks another leap towards greater transparency and efficiency in the loan market. Having a streamlined way to receive loans data directly from agent banks enhances the accuracy and timeliness of data maintained by custodians and portfolio managers.”
Joe Widner, Global Head of Portfolio Management and Loan Processing at Markit, said: “FpML messaging is a huge step forward and is another milestone in the technological evolution of the syndicated loan market. Markit is excited to be a part of transforming and expanding the opportunities for the global loan market.”