The corporate loan trading and transfer processes are archaic as its digital evolution has not grown in pace with how other securities, such as equities and bonds, have evolved. Secondary loan trading still involves “calling your 10 best friends” and manual NDA and KYC processes. This potentially results in the inefficient utilisation of resources, poor price discovery and limited liquidity.
The Global Financial Crisis of 2008 and the subsequent introduction of Basel III has fundamentally changed how banks’ lending practices and performance are assessed. Now banks are assessed on optimisation of capital and return on equity, hence, they are now required to dynamically manage their loan books according to risk-weighted asset targets and capital requirements.
PrivEx’s licensed online digital exchange provides members with its proprietary end-to-end trading solution, relieving members from “calling your 10 best friends” when trading a loan. Through our business model, members need only execute the global NDA and KYC once to ensure confidentiality in information transmission.
Through its digitised trading algorithms, trades can be listed and traded in less than 15 minutes as compared to expending approximately 19 man-hours under current protocols. “Calling your 10 best friends” results in the lack of transparency and accountability in secondary loan trading. PrivEx provides superior price discovery, enhanced liquidity and comprehensive data analytics.