Solution will help financial institutions meet time-critical regulatory deadlines and reduce costs associated with managing collateral
LONDON, Oct. 22, 2020 /PRNewswire/ -- Finastra, one of the world's largest fintechs, and CloudMargin, creator of the world's first and only collateral and margin management solution native to the cloud, today 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. 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. The solution will automate and optimize the collateral management process, helping users reduce costs and realize significant efficiency savings.
"Both CloudMargin and Finastra are committed to driving transformational change in collateral management – helping our customers experience the benefits of modern, SaaS technology that provides agility as well as operational and cost efficiencies, continuous updates and fast implementation," said Michael Henssler, General Manager, Treasury & Capital Markets and Risk at Finastra. "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."
Stuart Connolly, CEO of CloudMargin said, "We're delighted to provide the technology for this critical component of Finastra's offering. The integration of our collateral management workflow tool into Finastra's treasury and capital markets solutions creates a strong value proposition to support the full range of needs – from front to back office – of its broad client base. Through global strategic partnerships that complement our geographic footprint and market penetration, CloudMargin is increasingly powering the industry on collateral management, making it as easy as possible to have access to robust and comprehensive tools that are ever-evolving to meet the changing dynamics in the industry and the most state-of-the-art technology available."
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 seamless 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.
Because the new offering is delivered through a SaaS model, clients can onboard rapidly via the FusionFabric.cloud platform and benefit from access to robust and secure collateral management workflow software that is continuously updated and fully integrated with other Finastra treasury and capital markets solutions. There's no hardware to buy, install or support, minimizing the total cost of ownership for the customer.
About Finastra
Finastra is building an open platform that accelerates collaboration and innovation in financial services, creating better experiences for people, businesses and communities. Supported by the broadest and deepest portfolio of financial services software, Finastra delivers this vitally important technology to financial institutions of all sizes across the globe, including 90 of the world's top 100 banks. Our open architecture approach brings together a number of partners and innovators. Together we are leading the way in which applications are written, deployed and consumed in financial services to evolve with the changing needs of customers. Learn more at finastra.com.
About CloudMargin
Headquartered in London, CloudMargin created the world's first cloud-based collateral management workflow tool, which has earned 20 industry awards and honors since 2015 for innovation and best-in-class technology. The firm's Software-as-a-Service (SaaS) model helps leading sell-side and buy-side financial institutions globally – including banks, brokerage and asset management firms, pension funds and insurance companies meet time-critical regulatory deadlines and reduce dramatically growing costs associated with collateral requirements. CloudMargin delivers its robust, secure platform directly as well as through outsourcers and major industry service providers. Partner to and owned by the market, CloudMargin's strategic investors include Deutsche Bank, Citi, Deutsche Börse, IHS Markit and Jefferies, as well as venture capital firms such as Illuminate Financial. With more than 20 integration partnerships, CloudMargin was the first collateral management solution provider to be a member of the SWIFT network, facilitating straight-through processing through settlement. For more information, visit www.cloudmargin.com.
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