Collateral Optimization

Collateral optimisation is the centralisation of collateral management into a profit centre, or 'collateral hub'. This allows you to keep a tight control of collateral risk and collateral usage costs on an enterprise-wide basis. From there, you can optimise the use of collateral inventory across a number of different trading opportunities and business lines, both internally and externally.

As you gain a clearer picture of your firm's true cost of collateral in P&L calculations, you can then use this to more accurately assess the profitability of a given trade, versus other trades. This ultimately results in you making more informed trading decisions in real time.

The 4sight Collateral Management solution provides sophisticated tools for collateral trading and optimisation. The system enables you to boost revenues, free up surplus collateral and retain vital liquidity.

The solution helps you to streamline your collateral use across business lines by ensuring that you give out the most appropriate collateral, while maintaining compliance with regulatory requirements.

The result is a collateral management operation that becomes a true profit center rather than merely a risk mitigation activity.

4sight Collateral Optimisation Features & Benefits:

  • Optimize collateral for Securities Lending, Repo, exchange-traded and OTC derivatives
  • Allow the system to propose the collateral that meets your counterparties' collateral eligibility criteria with the lowest cost
  • Gain clear figures for your actual and your optimal cost of collateral
  • Run synthetic collateral allocations and what if scenarios
  • See allocation by sector, underlying client and usage breakdown
  • Substitute collateral based on corporate actions, eligibility and 'cheapest to deliver' collateral reallocation methodology
  • Comply with regulatory requirements more easily
  • Identify surplus collateral
  • Free up valuable liquidity

Further Information

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

Download the 4sight Collateral Optimisation Whitepaper

Read about the ROI on Collateral Optimisation Techniques

Read about the latest developments in Collateral Management technology here.

Read our Collateral Optimisation FAQs here.

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