Magazine article American Banker

Settlement Service from Thomson

Magazine article American Banker

Settlement Service from Thomson

Article excerpt

A unit of Thomson Financial Services has introduced a service that links institutional investors and managers with their custodian banks.

Officials at Thomson's Electronic Settlements Group said the new product, called Tradelinx, connects custodian banks and institutional investors for a quicker transfer of settlement and reconciliation information.

The group markets software and communications networks for banks and institutional investors. Thomson also owns American Banker.

The new service is designed for easy integration with Thomson's Oasys Global, a trading system that links investment managers with brokers, and Alert, an electronic data base for delivering instructions between brokers and institutions.

Paul Skuriat, business manager with Thomson, said many custodian banks receive trade details from institutions-by phone or fax. He said custodian banks, which hold securities for corporate clients, must then rekey the trade information into their own systems, which can lead to errors if information is incomplete or inaccurate.

Mr. Skuriat also said that many institutions were not adequately preparing for new regulations scheduled to go into effect next year.

The new Securities and Exchange Commission trade settlement rules, known as T-plus three, will require broker-dealer trades of U.S. corporate equity and debt securities to be settled in three days.

Currently, the trades must be settled in five days, or T-plus five.

The SEC rule, which was adopted in October 1993 and will go into effect in June 1995, "will affect a bank's ability to provide timely settlements," said Mr. …

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