Collateral Management
Recent market events and heightened financial volatility have
led regulators to call for greater transparency from financial
services organizations and for more stringent risk mitigation
techniques to be applied. The aftermath of the financial crisis saw
collateral management rise to the top of the agenda and now, with
Dodd-Frank / EMIR and the introduction of central counterparties
(CCPs), new margin management practices have been added to the
mix.
Banks and investment managers need to make rapid decisions on
whether to trade, and on what level of collateral is required. With
the value of assets changing quickly, it is imperative to assess
the level of the collateral required, and also to track valuations
on a real-time basis. It is no longer sufficient for organizations
do this on a weekly or monthly basis.
With the introduction of CCPs, market participants need to be
able to handle more complex margin requirements, with both the
initial margin amounts and the calculation methods varying by CCP.
A flexible system, designed for this scenario, is essential.
Misys' Collateral Management and Margining solutions provides a
fully integrated, 'one stop shop' for the real-time analysis,
assessment and control of exposure and net positions across OTC
derivatives and exchange traded derivatives. Bi-lateral trades as
well as cleared trades are accommodated in one solution. The module
has been extended to include real-time margin call management for
futures and listed options. Extensive valuation options have also
been incorporated to ensure that users know the exact level of
collateral required.
To learn more about Misys' Collateral Management Solutions,
click below: