4sight has enhanced its support for the tri-party trading process in the 4sight Securities Finance and Collateral Management system. The new features support the tri-party process with Clearstream, JP Morgan and BNY Mellon. This includes all steps of the process, from agreeing an RQV, to messaging and receiving triparty collateral allocations. 4sight Securities Finance can directly match these allocations back and allows users to view them against their respective trades.
Additionally, it enables users to reconcile mismatches in the value of exposures against collateral received in near real-time.
Now users can see which RQVs need to be booked, changed or cancelled in order to be 100% covered. The system can help users to identify tri-party collateralised trades, streamlining the booking process.
4sight has also added support for the industry standard and vendor specific versions of the SWIFT MT527 and MT558 messages. In addition, there is richer workflow support for SWIFT MT535 messages. This includes improved clarity and reconciliation of what the user thinks they have in their Long Box vs what is actually in their Long Box, and what has been allocated.
These new features combine data from the three tri-party providers into one system, allowing far easier management of collateral at all three agents at once.
“Due to client demand, we overhauled our existing triparty support and added a raft of new features”, explains Johnnie Peacock, 4sight’s Client Services Director. “Our clients are now able to see their triparty collateral allocations and automatically match off against their respective trades. They now also have access to advanced analytics and reconciliation tools, and can benefit in improvements in operational efficiency and risk visibility.”