SOLUTION SPOTLIGHT

WorldLend Integration with
SunGard Recall Management Hub

The SunGard Automated Recalls Management Service (ARMS) is designed to increase the efficiency of the management and control of recalls between borrowers and lenders. This service automates the messaging flow of recalls between lenders and borrowers through a single contact point while maintaining status control over the entire life-cycle of the process. Participants include borrowers within the Loanet community (with non-Loanet, external borrowers' messages routed to/received from DTCC for distribution) and Loanet lenders and other SunGard lending systems users.

SunGard's WorldLend lending clients are now in production with WorldLend's interface to the SunGard ARMS hub along with complimenting enhanced internal functionality to minimize the need for recalls and additionally simplifying the recall process itself.

The potential need for a recall is first identified by recognizing and acting on negative availability.

When the Availability File is updated through overnight and / or real-time updates from a trust/custody system, sales or delivery activities that reduce availability may cause an individual client position to go negative if shares already on loan exceed the resultant availability.

Managed control of the negative positions allows WorldLend users to first seek to resolve negative availability through automated reallocation facilities, using a fairness algorithm for suggested redistribution of the loan participation (thus eliminating account level negative availability). Where possible this leaves the stock loan with the borrower in place and the allocation from different underlying principals is notified to the borrower via the WorldLend ALDoP process (with all risk management and broker-beneficial owner approval validations performed).

Failing to achieve redistribution, automated recall messages are triggered by WorldLend and through real time integration with the SunGard Automated Recalls Management Service, these are routed to the appropriate broker (for either a partial or total recall).

The outbound recall messaging is triggered by either:

• a new recall being requested in WorldLend, or
• a change being made to an open recall

Completion of the recall is recognized by return received in WorldLend, either:

• entered by user online, or
• automatically received from the DTCC through the WorldLend - DTCC messaging interface

The enhanced WorldLend recalls functionality coupled with the automation of recall instruction delivery to borrowers through the SunGard ARMS, is now production-proven, and has shown to be most beneficial in assisting WorldLend clients to more effectively manage recall processing and track expected returns with a minimum of manual effort.