Emerging Technologies in Securities Finance and Collateral Management

Finadium
May 2014

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As financial regulations begin to directly impact the businesses of financial market participants, a new generation of technology vendors and service providers is emerging to capitalize on client demand and investor opportunity. Two main strategic directives drive these vendors: information delivery and operational efficiencies. However, the ways each vendor is seeking to gain or grow its foothold in the market can vary substantially.

This Finadium research report is a review of 12 vendors we have identified as emerging or worthy of note in this space. We profile six vendors in full and offer shorter commentary on an additional six. They cover multiple categories including securities lending, collateral management, OTC derivatives and margining calculations, and highlight unique features of each. Like large vendors of collateral management technology however, we see points of convergence both today and in the future for many of these firms.

This report has been written for a range of securities finance and collateral management market participants interested in new vendors. Potential clients including banks, asset managers, insurance companies and hedge funds may want to keep watch on new services that could help their businesses. Other technology companies may see possible competitors, partners or acquisition opportunities. Regulators may want to see how their rules are impacting market development, particularly in resolving some of the most vexing areas of complexity including the reduction of leverage and the introduction of new collateral rules across cleared and non-cleared OTC derivatives. For all of these audiences, we expect this report to be a useful overview in understanding the profiled vendors and identifying key themes for new vendor growth in the market.

This report is 30 pages with 6 exhibits.

TABLE OF CONTENTS

■ Executive Summary

■ The Pace of Change is Accelerating

■ The Vendors
– Advent Software/Syncova
– CloudMargin
– IntegriData
– OpenGamma
– SL-x
– Trading Apps

■ Other Notable Offerings

■ Common Themes Across the Vendors

■ About the Authors

■ About Finadium