ShadowSuite's LoanStar was developed to enable a trading group to self-clear
with an outsourced securities finance operation, thereby reducing the capital
and operating expenses associated with having a dedicated Stock Loan Department.

LoanStar provides a seamless front and back-end system that calculates securities
finance requirements. Based on these calculations, LoanStar instructs the associated
stock loan group to "borrow to cover short”, "finance a long" or close out the most
cost effective open financing position. All outstanding trading activity and positions
for multiple trading groups can be aggregated and "netted down," ensuring that
only one instruction per security is sent to the securities finance group.

The LoanStar platform automates processes that were formerly labor-intensive.
Deals done are brought into the trading groups' ShadowSuite system and automatically compared to what was previously instructed. Deals within pre-determined tolerances
are passed into ShadowSuite's AutoCage for auto-instructing and reconciliation.
Those that are outside of the pre-set tolerances are sidelined for manual intervention.

 




 
 
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