Enables users to take advantage of straight-through-processing from call calculation to settlement of collateral in order to streamline and optimize collateral management procedures
LONDON, NEW YORK, SINGAPORE, HONG KONG and SYDNEY, Aug. 22, 2017 /PRNewswire/ -- CloudMargin, the multi-award winning creator of the world's first web-based collateral and margin management solution, and DTCC-Euroclear Global Collateral Ltd. (GlobalCollateral), a joint venture of Euroclear and The Depository Trust & Clearing Corporation (DTCC), today announced that they have entered into an agreement to connect CloudMargin with GlobalCollateral's Margin Transit Utility (MTU). The agreement expands CloudMargin's settlement capability and enables users to access MTU from the cloud, fully automating the entire collateral lifecycle.
CloudMargin is the first technology provider to join GlobalCollateral's Partner Program, with MTU integration efforts currently underway. MTU is a comprehensive industry solution that automates and streamlines the processing and settlement of margin and collateral for dealers and buy-side firms. The solution reduces risk and costs for market participants by securely capturing settlement instructions, accelerating processing velocity, improving visibility and consolidating reporting.
Through this partnership, mutual clients logged onto CloudMargin can access full MTU capabilities including automatically sending settlement instructions to their custodians enriched with centrally stored settlement instructions (SSIs) from DTCC's ALERT database. Users will also receive MTU's automated intraday settlement status information directly into CloudMargin. This full automation of the collateral lifecycle reduces manual touch points, ensures data accuracy and creates increased transparency into the collateral process.
Ted Leveroni, Chief Commercial Officer at GlobalCollateral, stated: "We welcome CloudMargin to our Partner Program to bring increased efficiencies, accuracy and transparency to the collateral management process. This integration will enable a true end-to-end solution, allowing our mutual clients to streamline and scale up processes at a time of increasing collateral and margin call demands."
Simon Millington, CloudMargin Head of Product Management, said: "We are very excited about this integration with GlobalCollateral and look forward to bringing great new efficiencies to our respective users. We already have significant interest among our clients and prospects, particularly in this environment where the requirements to post daily Variation Margin have introduced a pressing need for technological solutions and a community of providers available at clients' fingertips."
CloudMargin has established an extensive network of approximately 20 exchanges, clearing firms and other technology solution partners, providing an opportunity for clients to create a collateral management solution tailored to their unique needs. The CloudMargin and MTU link is expected to go live in Q4 2017.
Headquartered in London, CloudMargin created the world's first cloud-based collateral management workflow tool, which has earned eight different industry awards since 2015 for innovation and best-in-class technology. The firm's Software-as-a-Service (SaaS) model is helping many of the leading financial institutions globally – including exchanges, brokerage firms, banks, asset management firms and insurance companies – meet time-critical regulatory deadlines and reduce costs associated with collateral requirements that are growing dramatically. CloudMargin bypasses many of the shortfalls of legacy, on-premise software, enabling clients to experience rapid implementation and access to robust and secure collateral management workflow software. For more information, visit www.cloudmargin.com.
DTCC-Euroclear GlobalCollateral Ltd ("GlobalCollateral") is a joint-venture between DTCC and Euroclear, two of the world's largest post-trade infrastructures. An open architecture infrastructure designed to streamline collateral processing globally, GlobalCollateral provides both OTC derivatives and financing solutions that deliver transparency, collateral mobility, efficiency and security through two powerful utilities:
- The Margin Transit Utility: enabling straight-through processing of margin calls and providing improved liquidity and operational risk management.
- The Collateral Management Utility: automating collateral management tasks, re-positioning inventory seamlessly across settlement locations, making collateral available wherever and whenever it is needed.
For more information, visit: www.globalcollateral.net.