BBH hopes to boost post-trade automation for its securities lending clients via Pirum’s solution.
Brown Brothers Harriman & Co. (BBH) is offering a third-party solution intended to help firms avoid securities lending failures while processing transactions in the trading day plus one (T+1) settlement cycle that begins in late May of this year in North America.
Hoping to smooth its North American clients’ transition to T+1, BBH is partnering with post-trade services provider Pirum Systems to offer its Recalls Manager solution to BBH clients, officials say.
Pirum, which has been a securities finance industry provider for more than two decades, launched Recalls Manager to target securities lending fails, penalties, overdraft costs, and inefficient operations. Founded in 2000, Pirum offers a Software as a Service (SaaS) platform for its transaction processing solutions.
The new arrangement with Pirum builds upon BBH and Pirum’s existing business relationship whereby BBH can offer Pirum’s Trade Risk Manager and Corporate Actions solutions, officials add.
The Recalls Manager solution encompasses the post-trade securities lending lifecycle from issuance to closure, including preventing Central Securities Depositories Regulation (CSDR) penalties, avoiding overdraft costs, mitigating buy-in risks, increasing trading desk capacity, and increasing control and oversight.
“Expanding our capabilities in this area, and all post-trade processing, reduces operational friction with our borrowers, and allows us to better service our clients by reducing disruption to regular portfolio management activity,” says Sarah Holmes, BBH principal and global head of securities lending, in a prepared statement.
BBH has three major business units: Investor Services, Investment Management, and Private Banking. Its securities lending solutions are part of the Investor Services offerings.
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