Finastra and CloudMargin announced a global partnership to deliver an integrated collateral and margin management solution to market participants of all sizes through a Software-as-a-Service (SaaS) model. The solution will automate and optimize the collateral management process, helping users reduce costs and realize significant efficiency savings.
Collateral Management as a Service, powered by CloudMargin and available through Finastra’s FusionFabric.cloud platform, connects to Finastra’s core treasury and capital markets solutions, facilitating end-to-end straight-through processing of derivatives transactions, and all associated collateral management workflows, from trade booking through to settlement.
Michael Henssler, general manager in the Treasury & Capital Markets and Risk division of Finastra, said in a statement: “We’re seeing increased demand for collateral services from our customers. Our collaboration in delivering Collateral Management as a Service will help both buy-side and sell-side financial institutions globally meet time-critical regulatory deadlines and reduce the costs associated with today’s growing collateral requirements.”
Collateral Management as a Service covers end-to-end collateral management workflows for variation and initial margin for over-the-counter (OTC) derivatives contracts, repos and securities lending, To Be Announced (TBA) trades, and listed futures and options. The service is suitable for all sizes of organizations from the largest investment banks to small and medium-sized buy-side institutions. It offers flexible reporting and auditing processes and provides connectivity to standard market utilities including AcadiaSoft, SWIFT and the Margin Transit Utility (MTU) from DTCC and Euroclear, as well as other third-party services.