Five banks including Citigroup and Royal Bank of Scotland have signed up to a new system that aims to streamline the processing of syndicated loans, in the latest sign of collective action by market participants to reduce the risks associated with off-exchange clearing.
The Depository Trust & Clearing Corporation, a user-owned clearing company, will launch a platform in the second half of this year that will reduce banks' dependence on manual processes in the $4.5 trillion (â¬2.9 trillion) syndicated loan market.
