SunGard Expands Loanet

With the launch of Loanet Automated Rebate Collection, SunGard has expanded its Loanet suite of securities finance solutions to help securities finance, operations, trading and technology professionals more efficiently handle the collection and settlement of rebates from firms borrowing or lending securities.

The borrower and the lender of a security accrue rebates that are generally collected by the payee on a monthly basis. Each party maintains its own records and relies on manual processes such as emails and phone calls to resolve discrepancies and collect payments.

The Loanet Automated Rebate Collection service automatically collects rebates for matched payments, schedules their settlement, and extracts and reports rebate collection data. Optional modules automatically update general ledger systems for rebate payments, write-offs and adjustments. The service centralizes all rebate collection and payment information and provides an audit trail of all activities related to the negotiation and settlement of rebate charges.

"Securities finance participants continue to adapt to faster moving markets and higher levels of regulation," says Josh Galper, managing principal of consultant Finadium. "Further automating the rebate collection process provides welcome relief from a time-consuming and occasionally frustrating process. It also frees up important internal resources to focus on higher value added tasks."