The operational and settlement aspects in the syndication process are far-reaching and have a significant impact on the efficiency of the transaction process. We seek to bring about increased efficiencies and standardisation.
One way in which this challenge is faced is through our dedicated Committees, focused on Agency, Operations and Settlement. We also have a dedicated Junior Committee, tasked with bringing new ideas to the fore to help fast-forward change.
We encourage you to engage with the discussion.
On 2 March 2023, the LMA is delighted to announce the publication of the updated LMA / LSTA Standard Administrative Details Form, which now includes optionality for inputting Standard Settlement Instructions / Wiring Instructions for those transactions that align with the ISO20022 updates.
Updates to the LMA Loan Servicing Heatmap
On 26 January 2023, the LMA released its updated Loan Servicing Heatmap to account for changes requested by the LMA's European Loan Operations and Agency Committees.
The new Heatmap and Guidance Document include:-
- The inclusion of a timetabled period for the creation of deal sites in the Heatmap and principal guidance document;
- Updates to the timetable period for executing Billing/Invoicing and Late-payment under the Heatmap and Fee Guidelines; and
- Removal of trading standards in relation to loan trading (to be covered in separate update to the Secondary Heatmap).
LMA, in collaboration with Finastra, releases a series of articles looking at utililising digitisation in the loan market.
This article identifies the building blocks necessary to permit the change to digitisation - a change that has the potential to transform and grow the loan market.
This article examines how automation is not only critical to achieving workplace efficiency, but is also a necessary tool in attracting the digitally inclined Gen Z talent to the industry.
This article explores how a market standardard data set would enable an interoperable future where vendor platforms are able to speak to one another and drive efficency gains throughout the market.
Settlement Working Group
This Group explores innovative solutions aimed at alleviating the prolonged market settlement times seen across Europe. The Group is open to all members and if you would like more information, please contact Nigel Houghton.
Loan Servicing Heatmap
Key challenges facing agents during the completion of a primary syndicated lending transaction and the primary syndication process.
E-learning course comprised of 10 modules providing an overview of the syndicated loan market.
Click here for a copy of the secondary heat map template and accompanying guiding principles.
Click here to access the LMA Secondary Settlement Statistics.
The "Escalation Matrix" seeks to provide institutions with a direct line to a senior member at their counterparty, who may be able to progress, or explain, any delay to a transaction where communication between the two parties has broken down or become frustrated.
We invite all LMA members to participate in this initiative by completing the attached template and sending to Sophie Turner at the LMA.
Please contact us if you have any questions.
The LMA and LSTA have together launched a standard Administrative Details Form ("ADF") to be used in transactions globally. Whilst not all fields will be relevant to every transaction, it is hoped this template will constitute a market standard for communicating key administrative details. It is hoped that broad based adoption of the ADF will lead to efficiencies in both time and effort in compiling this detail.
Furthermore, the LMA has produced an Agency Details Form, which is to be used alongside the ADF. This form complies key agent and settlement details which should be used as a template
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