Collateral Eligibility and Margin Control

The 4sight Xpose Collateral Management system offers flexible collateral eligibility and haircut schedules that you can configure, save and reuse.

Below are some examples of the collateral eligibility criteria available in 4sight Xpose. It is possible to add new client-specific eligibility criteria on request.

Quickly and Easily Create New Eligibility Rulesets

Collateral Managers can build up criteria to create their own individual eligibility rules to match their firm's risk parameters. When combined into rule-sets they define whether an instrument or currency is eligible for the client, client group or company assigned to that rule set. The creation of new custom rule-sets is very quick and easy using an intuitive interface.

Automated Alerts

Upon booking a trade that breaches any type of limit, the collateral management system will generate a warning message to the user.

As a result of the system's real-time collateral verification functionality, collateral imbalances do not occur (where ineligible securities have been pledged to a given client in breach of the underlying legal agreement), as the system identifies them prior to receipt.

When there are changes to a counterparty credit limit, eligible collateral parameters or concentration limits, the system's reporting functionality will automatically highlight trades affected by this to key personnel. 4sight Xpose can also undertake the appropriate return of securities and/or collateral to bring the transaction back into line.

Key Eligibility & Haircut Features

• Prevent booking of ineligible collateral for any Repo, Securities Lending and OTC/listed Derivatives collateral movements, whether automatically or manually created

• Base the selection, allocation and verification of cash & non-cash collateral on GMSLA, GMRS or ISDA/CSA eligibility rules and haircut schedules

• Quickly establish equity, bond and hybrid eligibility and haircut schedules on a wide range of instrument or cash criteria at the borrower, fund, group or company level

• Compound or simple calculation of haircuts for eligible collateral

• Apply special exclusions per ISIN, matching issuer, hot or restricted stocks and stale prices

• Quickly modify lending sources' and borrowers' haircut, margin and thresholds when the market moves

• Automatic alerts of collateral eligibility breaches to key personnel

• Synthetic allocation to underlying lending sources for agency lending based on lenders' eligibility criteria

• Quickly and easily configure new rule-sets on demand

Further Information

For further information on the 4sight Xpose Collateral Management system or a product demonstration please Contact Us

Read about the latest developments in Collateral Management technology here.

Read about the ROI on Collateral Optimisation Techniques

Download the 4sight Collateral Optimisation Whitepaper