According to a joint statement, CloudMargin’s platform will be integrated into Deutsche Bank’s collateral infrastructure. The move is expected to save on costs and improve the client experience by creating a networked solution for Deutsche Bank’s collateral management, resulting in additional transparency, reduced operational risk and simpler processes.
Joseph Macdonald, global head of Collateral Optimisation Trading for Deutsche Bank, said in a statement that this is believed to be the first time a Tier 1 bank will use a public cloud-based service for a critical piece of infrastructure, such as managing margin calls with its own counterparties.
The transition to CloudMargin’s cloud-based platform means that Deutsche Bank and its clients will benefit from access to the same information about the obligations and required actions for their cleared and non-cleared over-the-counter (OTC) transactions.
This transparency is expected to significantly reduce manual intervention and eliminate discrepancies that would otherwise take time and resources to resolve. CloudMargin clients are automatically connected to an online hub with a community of upstream and downstream partners who add further efficiencies and straight-through processing opportunities.
CloudMargin CEO Steve Husk said that with Deutsche Bank on the platform, CloudMargin can easily onboard anyone doing business with the firm.