Is there life after Agency Lending Disclosure of Principal (ALDOP)?

As you have read in previous issues of eNews, Loanet has invested significant resources and time to assist the securities lending community in meeting the Agency Lending Disclosure of Principal regulatory reporting requirements.

On average, the ALDOP application developed by Loanet handles approximately 2.5 million records on a daily basis, on behalf of more than 80 Broker Dealers and more than 30 Agent Lenders, representing data for over 300,000 Principal Lender relationships. The application produces more than 6,000 reports each day, in both PDF and text-delimited FTP formats.

Effective October 2, 2006, ALDOP is live and in production industry-wide. However, the reality of the situation is that ALDOP is not done. Industry, regulatory and client feedback continues to drive further refinements and functionality to the system. We expect that Loanet needs to continue to invest substantial resources in this product for the foreseeable future. Nonetheless, having met the regulatory requirements, the work we do on a go-forward basis will be focused on value-added enhancements.

While the ALDOP initiative took center stage, work continued in other major areas of the Loanet service line. Some highlights include:

Loanet Centralized Order Routing (LCOR) support for non-custodial lenders (see LIB 06-002). This enhancement provides non-custodial lenders access to the LCOR Straight-Through-Processing environment used by more than 70 broker dealers for automated order processing. LCOR reached the twenty million orders per year milestone in 2006 for the first time.

Enhanced LCOR support for screen-based Loanet Agent Lenders (see LIB 06-001). Firms utilizing the Loanet Agent Lender module can now better manage their LCOR processing with real-time portfolio inventory look-ups on the LCOR execution screen.

The launch of Loanet Repo/Government Comparison services. The first generation of comparison services being offered by Loanet for the Repo/Governments market was announced in eNews in the second quarter of 2006.

International Contract Comparison (ICC) global comparison services. Loanet extended its international contract comparison services to the Australia and Asian markets and now has more than ten clients involved in this market arena.

In the post-ALDOP world, Loanet can once again focus on the traditional Securities Lending segments we service – Accounting, Order Routing, Settlement Processing and Automation, Comparison, Inventory and Collateral Management. Some things to look for in 2007:

As announced last year, Loanet is hosting periodic Operations Roundtable meetings with representatives of the Loanet participant community, identifying key client issues and concerns for which we can provide solutions. The next roundtable meeting is planned for the first quarter of 2007.

Loanet Professional Services will substantially expand its work with individual client firms, providing consulting and development support for client-specific projects.

For additional information, please contact:

Dan Belluche at 603-898-6185 ext. 404 or via e-mail at daniel.belluche@sungard.com

or

Rick Stinchfield 603-898-5980 ext 354 or via e-mail at richard.stinchfield@sungard.com