Xpose Collateral Management System

Clear Views of Counterparty Exposures

Collateral management has come to the fore as an important method of mitigating counterparty credit risk in the aftermath of the financial crisis and the bankruptcy of Lehman Brothers in 2008.

4sight Xpose provides an enterprise-wide collateral management and collateral optimisation solution that gives you control over your collateral processes.

It offers full front to back office collateral management for securities lending, repo, bilateral OTC derivatives, exchange-traded derivatives and centrally cleared derivatives products in a single integrated solution.

The system provides the tools you need to gain a clear picture of your firm's exposures, mitigate risk more effectively and optimise your collateral use across multiple products.

Xpose is used by some of the world's largest financial institutions as a standalone collateral management system or as an integrated element of the 4sight Securities Finance product suite. It also meets the needs of smaller financial firms looking for a flexible and easy to install collateral management solution.

Xpose allows you to view exposure in real time across business lines, giving you a centralised view of your collateral holdings. Xpose provides full front to back office processing from inventory management, margin control and optimisation, through to trade lifecycle workflow, dispute tracking and settlement.

The system also offers tools to automate manual processes, mitigate risk more effectively and respond more easily to regulatory change, while making the optimum use of your firm's balance sheet and retaining vital liquidity.

A front to back office Collateral Management solution

Xpose supports front to back office support for the collateral process across the following functional areas:

Inventory Manager: Displays security and cash positions across your profit centre hierarchy. You can select any level in the hierarchy and the monitor will display the positions for that level. The Inventory Manager displays the settled position for each security and forecasts future positions.

Exposure Ladder: View and manage exposures and margining workflow for Securities Lending, Repo, Exchange Traded and OTC Derivatives and CCP collateral. Also allows you to create and manage eligibility/haircuts/concentration schedules and optimise collateral pledges and receipts.

Collateral Optimisation: Sophisticated tools for collateral trading and optimisation that enable you to boost revenues and reduce your cost of collateral across multiple business lines and asset classes. Read more

Trade Lifecycle Processing: Process trade lifecycle events such as mark to market, margin calls, trade amendments, corporate actions, returns, collateral substitutions, disputes etc. Xpose offers intuitive workflow dashboards to guide you through the margining process.

Settlement: Carry out individual or multiple settlement of trades and collateral movements and manage settlement fails. Includes a built-in SWIFT module that creates and receives, in real-time, a wide range of ISO15022 standard SWIFT messages.

P&L, Fees and Billing: Manage, monitor and report on profit and loss at multiple levels. Calculate and send fee statements to clients.

Reporting: Query and report on a wide range of data. Allows you to create custom reports and run automated scheduled reports that can be sent out by fax/email etc. Read More

4sight Xpose Collateral Management Solution Features

Manage collateral for Securities Lending, Repo, Exchange Traded and OTC Derivatives
Support for CCP collateral management (EMIR & Dodd Frank)
Process cash and non-cash collateral on a pool or trade basis
Automate collateral management processes such as marks and margin calls with real-time updates
Gain clear views of exposures across business lines
Boost revenues through better collateral optimisation, allocation and utilisation across business units
Centralise collateral trading into a single profit centre
Automate mapping of legal agreements (CSA/CSD/GMRA/GMSLA etc)
Define & apply sophisticated schedules for haircuts and collateral eligibility
Run on-demand collateral concentration scenario analysis
Automate collateral substitutions using cheapest to deliver algorithms
Improve decision making with accessible real-time reporting
Interface with a wide range of third party systems and trading platforms

Collateral Management System Benefits

Stronger risk management
Clearly see exposure with each counterparty
Lower costs
Optimised use of inventory across business lines
Less regulatory capital
Increase your range of counterparties
Broaden the range of collateral you give and receive
Quick and easy to deploy
Comply more easily with regulations such as EMIR & Dodd Frank

Further Information

For further information on the 4sight Xpose system for Securities Lending, Repo and Derivatives collateral management or a product demonstration please Contact Us

Read about the latest developments in Collateral Management technology and collateral optimization techniques here.

Download the 4sight Collateral Optimisation Whitepaper

Read about the ROI on Collateral Optimisation Techniques