The collateral management services space has seen over a dozen new entrants join existing banks and technology companies in the last two years, who themselves have continued to adapt their products and services to meet new client demands. As new regulations come into effect, providers are finding new profitable niches to occupy in the collateral space. A new survey from Finadium figures out who is doing what and to what ends.
This research report is a survey of collateral management trading platforms and service providers. These firms do not fit into a neat category of technology provider, although all are driven by technology as it applies to offering client services. This survey segments the marketplace, provides an understanding of target market segments, then looks at new features added over the last year and expected priorities for the coming 12 months. The survey covers 17 firms globally with 31 offerings in the marketplace.
This study is a follow up to our December 2017 survey of collateral management technology vendors. In the December 2017 report, we found multiple firms that did not fit the traditional ‘Software Solution’ provider profile. This has led us to conduct a new survey focused on platforms and services distinct from traditional collateral management technology. The results show first that collateral management has become a deep and robust part of the capital markets landscape, and second that banks and vendors, some of them operating as industry utilities, continue to innovate in this dynamic space.
Automation gains a special mention in this survey: while some firms mention automation as a specific priority, the drive towards efficiency and adoption of technologies like artificial intelligence and blockchain have spread throughout the industry. Few collateral offerings now lack some feature of advanced technologies and more will be coming in the next year.
This report should be read by clients of collateral management outsourcing and workflow providers and by users of collateral trading platforms. The report presents a peer-level review that should be useful for providers in understanding industry trends. Regulators may also have an interest in determining how recent reporting and liquidity requirements have translated into market offerings.
Finadium subscribers to our Securities Finance, Collateral and Derivatives series can log in here to access this report.
A direct link to the report for Finadium research clients, when logged in, is http://finadium.com/finadium-report-desc/collateral-trading-platforms-and-service-providers-a-finadium-survey/
For non-subscribers, more information is available here.