The 4sight collateral management
solution helps to automate collateral substitutions and
recalls. This allows collateral managers to deal with previously
complex time-consuming manual processes more efficiently while
controlling collateral costs in a dynamic real time manner.
The 4sight collateral system allows users to automate collateral recalls and substitutions in real time based on:
The system can also help financial firms to optimise the pledged
collateral portfolio by proposing collateral reallocations based on
cheapest to deliver methodology.
The module allows users to choose whether to propose and book optimal collateral substitutions with one click, to multiple counterparts, within the same operational task as managing the recalls.
Alternatively, the system can book the recalls and returns first and then refresh the firm's exposures and collateral availability to include them. This allows the system to optimise all subsequent collateral movements later in the day, safe in the knowledge that the mandatory operational returns and recalls have already been processed.
Typically, CCPs will request a start of day cash collateral movement to cover margining requirements. However, many CCPs will then allow clearing brokers/direct members to substitute pledged cash collateral with cheaper to deliver assets.
The 4sight collateral management solution can automatically
propose suitable reallocations to reduce collateral costs and
ensure the CCP is collateralised with the lowest cost collateral
within its eligibility guidelines.
The 4sight collateral system can also receive an automated feed of collateral eligibility schedules from CCPs. When a CCP's eligibility schedules change and collateral pledged with the CCP becomes ineligible, the 4sight system can alert the user and propose substitutions.
Read more about CCP collateral management
For further information on the 4sight Xpose system for Securities Lending, Repo and Derivatives collateral management or a product demonstration please Contact Us
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