Triparty Collateral Management

4sight Securities Finance (4SF for short) provides off the shelf interfaces with triparty collateral managers (JPM, BNY, Clearstream). 4SF supports the booking of all stock loan, reverse stock loan, repo/reverse repo transactions and the automatic transmission of trade data via SWIFT.

The 4sight triparty module allows triparty collateral allocations from the triparty agents to flow directly into the 4sight system. The system then automatically matches them to their respective SBL or Repo trades. This reduces the manual effort spent matching trades and allows a much clearer picture of overall risk.

4SF supports all steps of the process, including agreeing an RQV, automated SWIFT messaging and the matching of triparty allocations.

Improved Reconciliation

The 4sight triparty module enables you to reconcile any discrepancy in the value of exposures against collateral received in near real-time.

The system clearly shows:

-The 4sight value of the RQV

-The triparty agent value of the RQV

-The difference between these two values and what is booked to cover the RQV in 4sight.

The module offers improved long box clarity, including allocated and unallocated quantity/value and tripartite total value.

4SF automatically processes MT535 messages, giving you a daily reconciliation between what you think is in your Long-box and what the triparty sees. This allows you to effectively manage your "Long-box" with each operating agent, to control concentration limits on a portfolio basis. This is regardless of whether you receive collateral on a bilateral or tripartite basis, and allows you to make use of "idle" long box assets for firm financing.

Reduced Operational Workload

The 4sight triparty module supports processing of triparty SWIFT messages (MT527, MT558), allowing the system to automate the booking process.

This results in increased STP and a reduction in manual effort and human error.

Enhanced Collateral Efficiency

From the borrower perspective the visibility you now have over your triparty longbox allows you to bring back collateral that has not been used by the triparty agent at the end of the day. In a world where collateral is increasingly important, this means that your collateral is also working as hard as it can for the firm.

For further details of the 4sight Triparty module or a demonstration of the 4sight Securities Finance or 4sight Collateral Management solutions please Contact Us

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