4sight Enhances Collateral Optimization Service

4sight Financial Software has expanded its collateral optimization system by introducing new substitution features.

4sight’s collateral optimization service centralizes collateral management into a profit center and creates a hub where users can gain an overview of collateral risk and usage costs.

The new collateral substitution features allow users to automate collateral recalls and substitutions based on corporate actions, changes in collateral credit ratings, changes in counterparty and CCP eligibility criteria, and to recall requests by underlying clients leading to a short position. The system can also help users see when pledged collateral is no longer cheapest to deliver and can provide reallocations.