The 4sight 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 the solution. It is possible to add new client-specific eligibility criteria on request.
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.
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.
Read about the ROI on Collateral Optimisation Techniques
Download the 4sight Collateral Optimisation Whitepaper