BBH Rolls out Pirum’s Recalls Manager to Prepare Clients for the Shift to T+1 Settlement

March 20, 2024
  • Investor Services
Ahead of the securities settlement cycle in North America shortening to T+1, BBH Global Securities Lending has launched Pirum’s automated Recalls Manager solution to reduce securities lending fails, penalties, and overdraft costs, while increasing operational efficiency.

Boston, MA, March 20, 2024 – Brown Brothers Harriman & Co. (BBH), a market-leading custodian and administrator, today announced that it has launched Recalls Manager from Pirum, the post-trade services fintech that has been at the heart of the securities finance industry for over two decades.

BBH adopted the Recalls Manager solution in an effort to reduce securities lending fails and leverage automation and real-time coverage, to promote a smooth transition to the shortened T+1 settlement cycle. Covering the full global post-trade lifecycle from issuance to closure, the benefits of the plug-and-play Recalls Manager solution include:

  • Reduced fails, CSDR penalties, and overdraft costs
  • Reduced operational costs
  • Mitigated buy-in risks
  • Increased trading desk capacity
  • Increased control and oversight

“We are pleased to partner with Pirum to further enhance our post-trade automation capabilities. Straight Through Processing (STP) across the full recall lifecycle is an important risk mitigant prior to North American markets moving to a T+1 settlement cycle in May. 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," said Sarah Holmes, BBH Principal and Global Head of Securities Lending.

This newest adoption of Pirum services deepens BBH and Pirum’s long-standing relationship. BBH has previously automated other aspects of the post-trade lifecycle with Pirum’s Trade Risk Manager and Corporate Actions solutions.

Jacob Koopmans, Chief Revenue Officer at Pirum, said: “We are delighted to work with BBH and help facilitate a seamless transition for their clients with our T+1 ready solution. By rolling out Recalls Manager well ahead of the incoming regulatory shift, BBH has yet again achieved a smooth continuation of its best-in-class client services and enhanced risk management oversight. In addition, BBH has freed up time and resources, which it can now redeploy to deliver even more value to its clients.”

About T+1

The move by BBH precedes the U.S. Securities and Exchange Commission’s (SEC) incoming T+1 regulatory regime, effective on May 28th 2024. Capital markets participants operating in the US will from then on be required to complete their securities trade-related settlements within one day of the transaction (‘T+1’), halving the current standard T+2 days cycle. Canada and Mexico are implementing the regime on May 27th 2024. Both HM Treasury and the European Commission have signalled that they are now focusing on how and when the UK and the European Union, respectively, will transition to T+1 settlements.

This update is intended only for distribution in the United States, United Kingdom, Switzerland, and Japan.

About Brown Brothers Harriman

BBH is an independent, global financial services firm founded in 1818 and headquartered in New York City. It counts among its clients, institutions, privately-held companies, families and wealthy individuals which it serves through its three business lines: Investor Services, Investment Management and Private Banking. The firm is known for its exceptional client service and specialist expertise.

BBH’s Investor Services business provides cross-border custody, accounting, administration, markets products, included global securities lending, and advanced technology services to many of the world’s leading asset managers and financial institutions. BBH’s Investment Management and Private Banking businesses manage public and private securities portfolios, advise banking clients on strategic direction, provide debt financing and banking services and offer trust and estate services.

BBH, including BBH Investor Services, operates in over 90 markets worldwide from 18 offices. BBH employs approximately 6,000 professionals. For more information, please visit www.bbh.com.

About Pirum System

Pirum Systems was founded in 2000 with the objective of automating the full post-trade lifecycle for the securities finance and collateral management industries. The Software as a Service (SaaS) platform has since become the industry gold-standard globally for post-trade automation and connectivity solutions. Today, the Pirum platform is used and trusted by over 120 leading financial institutions around the world, covering both buy- and sell-side activities, and including the majority of Global Systemically Important Banks. Pirum delivers automation, operational efficiency, regulatory compliance, and reduced cost for its network of clients, who use Pirum solutions to process their trades in global financial markets. By connecting market participants around the world, the Pirum dynamo sits at the heart of a complex multi-party financial markets eco-system, all the while increasing transparency, streamlining operations and fostering collaboration. www.pirum.com

Brown Brothers Harriman & Co. (“BBH”) may be used to reference the company as a whole and/or its various subsidiaries generally. This material and any products or services may be issued or provided in multiple jurisdictions by duly authorized and regulated subsidiaries. This material is for general information and reference purposes only and does not constitute legal, tax or investment advice and is not intended as an offer to sell, or a solicitation to buy securities, services or investment products. Any reference to tax matters is not intended to be used, and may not be used, for purposes of avoiding penalties under the U.S. Internal Revenue Code, or other applicable tax regimes, or for promotion, marketing or recommendation to third parties. All information has been obtained from sources believed to be reliable, but accuracy is not guaranteed, and reliance should not be placed on the information presented. This material may not be reproduced, copied or transmitted, or any of the content disclosed to third parties, without the permission of BBH. Pursuant to information regarding the provision of applicable services or products by BBH, please note the following: Brown Brothers Harriman Fund Administration Services (Ireland) Limited and Brown Brothers Harriman Trustee Services (Ireland) Limited are regulated by the Central Bank of Ireland, Brown Brothers Harriman Investor Services Limited is authorised and regulated by the Financial Conduct Authority, Brown Brothers Harriman (Luxembourg) S.C.A is regulated by the Commission de Surveillance du Secteur Financier. All trademarks and service marks included are the property of BBH or their respective owners. © Brown Brothers Harriman & Co. 2024. All rights reserved. IS-09732-2024-03-06

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