Enterprise Collateral Management Systems For The Trading Book 2016

<p>This report is an update to the Enterprise Collateral Management Systems 2012 report and looks at&nbsp;the underlying factors of the current state of the collateral management systems market as well as key&nbsp;developments.</p>

<p><strong>Regulators shaping the market: Improved liquidity requirements, extended clearing and&nbsp;increasing standardization of Credit Support Annexes (CSAs).</strong> Regulators are changing the&nbsp;marketplace more than ever, with stricter procedures for:</p>

<p>• Entering into collateral agreements,<br />
• Repurposing collateral,<br />
• Maintaining the liquidity balance of a Financial Institution (FI),<br />
• Trading volatile and complex derivatives.</p>

<p>Firms are now having to respond to new demands to make the market transparent whilst maintaining&nbsp;appropriate levels of capital to survive stress periods.</p>

<p><strong>Collateral can be used for profit, it’s not just a cost.</strong> No longer is collateral viewed solely as a&nbsp;set-aside from profits which reduces the benefit potential in line with the risk. Business opportunities&nbsp;such as collateral transformation are rewarding those who manage their collateral well with enhanced&nbsp;opportunities to directly generate revenue. Even without resorting to transformation, efficient&nbsp;collateral management utilizing sophisticated optimization is becoming paramount as collateral opens&nbsp;avenues for strategic trades with companies otherwise unwilling to risk the deal.</p>

<p><strong>Integrating the silos.</strong> The traditional siloed view is breaking down; joining up an enterprise-wide&nbsp;inventory of assets is now viewed as being integral. All collateral processes handle copious volumes&nbsp;and rapid speeds of processes and are now based on better decision making. However, providing<br />
greater volumes of data to a larger audience with varying specialist knowledge is becoming a serious&nbsp;technology demand and a stress on the scales of the operation. These computational costs for near /real-time processing are leading to a general re-architecting of systems, whether internal or 3rd party.</p>

<p><strong>Racing for efficiency.</strong> FIs are being forced to conform to many new requirements and expect their&nbsp;systems to be able to handle these, as well as optimizing the process to ensure they handle them in the&nbsp;most efficient way possible. The competition for vendors to offer a full, optimized solution may shape&nbsp;the future of the supply side, transforming the landscape and the nature of the vendors that populate it.&nbsp;Whether using internal systems or a 3rd party, or outsourcing, significant investment is required. This&nbsp;competition within 3rd party technology providers is shown by major suppliers’ changes of ownership&nbsp;which have been continually taking place in the market.</p>

<p>This report uses Chartis’s FinTech Quadrant™ to explain the structure of the market. The FinTech&nbsp;Quadrant™ uses a comprehensive methodology of in-depth independent research and a clear scoring&nbsp;system to explain which technology solutions meet an organization’s needs. The FinTech Quadrant™&nbsp;does not simply describe one technology solution as the best collateral management solution; it has a&nbsp;sophisticated ranking methodology to explain which solutions would be best for buyers, depending on&nbsp;their implementation strategies.</p>

<p>This report covers the leading vendors offering collateral management systems for banking, including&nbsp;4sight, AcadiaSoft,Bloomberg ,Calypso,CloudMargin, FIS, Intellect Design, Lombard Risk Management, MathWorks, Misys, Murex, OMGEO, OpenLink, Quartet FS, SimCorp, SmartStream and TMX Razor Risk.</p>

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• Topics
• Analytics
• Data Management
• Financial Risk
• Risk & Data Technologies