Buyer’s Guide to Collateral Management Technology for Large Financial Institutions
April 2014Finadium reports are distributed primarily by subscription. If you are a research subscriber, please log in to download a copy of this report. Otherwise, please contact us at firstname.lastname@example.org.
The leading technology vendors of collateral management solutions to large financial institutions have spent years refining their products. There are now at least seven software vendors with sophisticated solutions and a concentration of major clients. While collateral management software purchases continue to be driven by regulatory change, there is a growing awareness that users can also take advantage of profit making and loss avoidance opportunities that more than compensate for the cost of systems and maintaining the associated infrastructure.
Collateral management can include multiple functions, but all the major vendors provide technology to facilitate collateral movements, integration with other parts of the collateral management infrastructure, reporting, and some form of optimization – although the latter can mean many things in today’s market. Some vendors are now expanding their collateral platform to capture more trading functionalities, notably through pre-trade analytics that show the cost of collateral requirements before a trade is made.
In this report, Finadium has reviewed seven vendors of collateral management technology to identify their strategic positioning and functionalities. The report is intended to assist buyers who work for large financial institutions to narrow 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 business and technology leads in collateral management at large financial institutions, their advisors and vendors.
This report is 38 pages with 7 exhibits.
TABLE OF CONTENTS
■ Executive Summary
■ What is Collateral Management Technology in 2014?
– Principal Vendor Functionalities
■ The Vendors
– Calypso Technology
– IBM Risk Analytics
– Lombard Risk
■ Sizing the Large Financial Institution Collateral Market
■ Evaluating Sticker Prices and Tips for Decision Making
– Eight Tips for Buyers (and Vendors)
■ About the Authors
■ About Finadium