Finastra, the financial technology company based in London, and CloudMargin, a collateral management platform, have partnered to deliver an integrated collateral and margin management solution.
The Collateral Management as a Service solution covers end-to-end collateral management workflows for variation and initial margin for securities lending, repo, and over-the-counter derivatives contracts, to-be-announced trades, and listed futures and options.
The solution will automate and optimise the collateral management process, helping users reduce costs and realise significant efficiency savings, according to Finastra.
It will be powered by CloudMargin and available through Finastra’s FusionFabric.cloud platform and is aimed at market participants of all sizes through a software-as-a-service model.
The firms say it offers flexible reporting and auditing processes and provides seamless connectivity to standard market utilities including AcadiaSoft, SWIFT and the Margin Transit Utility from DTCC and Euroclear, as well as other third-party services.
The platform will also connect to Finastra’s treasury and capital market solutions and facilitate end-to-end straight-through processing of derivatives transactions, and all associated collateral management workflows, from trade booking through to settlement.
Michael Henssler, general manager of treasury and capital markets and risk at Finastra, says: “We’re seeing increased demand for collateral services from our customers. Our collaboration in delivering Collateral Management as a Service will help both buy-side and sell-side financial institutions globally meet time-critical regulatory deadlines and reduce the costs associated with today’s growing collateral requirements.”
Meanwhile, Stuart Connolly, CEO of CloudMargin, adds: “The integration of our collateral management workflow tool into Finastra’s treasury and capital markets solutions creates a strong value proposition to support the full range of needs – from front to back office – of its broad client base.”
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