Secondary Loan Trading module or the SLT module is primarily concerned with the trading of syndicated loans in the secondary market. The participants in a syndication deal can carry out trading operations on the loan, once the syndication deal is closed and allocated. Brokers also can get involved in the trading process.

Loans QT is a front-end application which books buy and sell deals processed under secondary loan trading. A unique reference number called CUSIP indicates the facility associated with a syndication trade deal.

The profitability of the financial instruments involved in a deal can be ascertained by a method known as Marking the position To the current Market price (MTM), where the actual cost involved in the deal is compared to the current market price. Any profit or loss arising from this is booked to Unrealized P&L on a daily basis. In case of any buy or sell trade, the profitability of the transaction is arrived at by comparing the buy and sell prices. This gets booked into realized P&L on the trade date.

The settlement usually happens T+7 days from the trade date. On the settlement date, the seller sends out an advice called the Funding Memo to the trade counterparty. Funding memo gets generated on or before trade settlement and funding memo advice gets generated during save or authorization of Funding Memo, based on the advice parameters that are maintained.

Funding memo contains details regarding the fees, funded and unfunded amounts, settlement accounts, and so on. On the settlement date, the deal details are captured manually using the information gathered from trade ticket and funding memo.

The trade deals captured using external systems can be uploaded to the SLT module and further processing can be carried out. SLT module also allows you to capture buy or sell deals, amend the details, if required and carry out the settlement of the deal.