Technology vendors of collateral management solutions are entering a new phase of their development marked by increasing product sophistication, a greater number of clients, and competitors emerging from diverse parts of the market. The opportunities created by regulations and the convergence of risk, collateral and trading applications are substantial. At the same time, fast moving markets and changing regulatory requirements represent significant challenges. For vendors, the need for agility and nimbleness is at a premium.
Collateral management has evolved past margin management to encompass a range of smart, workflow-oriented activities catering to the buy side, sell side, central counterparties (CCPs), custodians and infrastructure providers. The leading vendors in this space have carefully thought through their clients’ needs including collateral optimization and reporting, and can make the case that their systems will generate demonstrated cost savings or revenue generation in the majority of cases.
In this report, Finadium has reviewed eight vendors of collateral management technology to identify their strategic positioning and functionalities. The report is intended to assist sell side and buy side managers and their advisors in narrowing down products that could be a potential best fit for their organizations. We do not provide a ranking of systems; it is our experience that there are enough differences between providers that a short-list can be created for multiple categories and client needs. Rather, we aim to provide enough details for managers to get past the first round of due diligence and start scheduling meetings with potential good matches.
This report should be read by financial market participants looking to understand the scope and direction of the collateral management technology vendor market. It will be particularly helpful for institutions needing to assess their own collateral management strategy in light of recent regulations.
This report is 33 pages with 4 exhibits.
TABLE OF CONTENTS
■ Executive Summary
■ What is Collateral Management Technology in 2012?
– Principal Functionalities
■ Client Buying Trends
■ The Vendors
– Advent Software/Syncova
– Calypso Technology
– IBM Risk Analytics (formerly Algorithmics)
– Lombard Risk
■ What’s at Stake in the Collateral Management Market
■ About the Author
■ About Finadium