This section of our University provides members with operational advice, guidance, and assistance on the rules and regulations around how the trading process should occur. Drawing on our expertise in operations, documentation, and data-driven analytics, we identify best practices for MEIs, CUSIPs, FpML, and more.
Primary Delayed Compensation Protocol
The Protocol applies to a “Primary Allocation” which is an allocation of new money by a syndicate desk in connection with either (i) a new issue syndication or (ii) an amendment of an existing Credit Agreement. In addition, the Protocol affects when-issued secondary trades by (i) changing what constitutes an Early Day Trade and (ii) creating a Post Funding Trade.
Glossary of Terms
Glossary of Terms relating to Delayed Compensation for Primary Allocations, Early Day Trades and Post Funding Trades
CUSIP numbers uniquely identify financial instruments in the United States and Canadian financial markets. The CUSIP number consists of 9 alphanumeric characters. It is issued by CUSIP Global Services (CGS) which is operated by Standard & Poor’s under license from the American Bankers Association. CUSIP numbers identify a wide variety of financial instruments including, without limitation, stocks, bonds, commodities and syndicated loans. CUSIPs are REQUIRED in order to utilize: LoanServ Position Reconciliation Platform Markit Clear Trade Matching Platform Loan/SERV – Cash on Transfer FpML Messaging
A Markit Entity Identifier (“MEI”) is a unique code issued to uniquely identify legal entities in the loan market, including, without limitation, banks, buy-side institutions, custodians, trustees and corporate borrowers. The MEI is a required element to enable transmission of information across processing and communication platforms including agency, settlement, front, middle and back-office systems.
Secondary Delayed Compensation - Early Day Trades
The LSTA has developed this flowchart to illustrate how Secondary Delayed Compensation on Early Day Trades is to be applied on a step-by-step basis.
Secondary Delayed Compensation - Post Funding Trades
The LSTA has developed this flowchart to illustrate how Secondary Delayed Compensation on Post Funding Trades is to be applied on a step-by-step basis.