Solution will help financial institutions meet time-critical regulatory deadlines and reduce costs associated with managing collateral.
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.