Monte Titoli has launched a new tri-party collateral management service for banks treasury and operations departments.
The London Stock Exchange subsidiary will act as a neutral third-party agent for optimised management of collateral used for finance operations in the inter-bank market. The customizable service will be called X-COM and will give users the full control of the risk profile chosen for their investments, enabling them to continuously monitor their portfolio while reducing the administrative risks linked to collateral management activities.
During the initial implementation phase, X-COM will interact with Bank of Italy’s pooling system to support Eurosystem credit operations.
The second phase will see the service expand to further centralized activity of collateral management to support different business needs such as financing, securities lending and margin management for operations with central counterparties.
Paolo Cittadini, CEO of Monte Titoli, said: “The new X-COM service responds to our customers’ growing need for diversification of financing tools and efficiency on the markets, offering a collateral management service essential to every market participant.
*The two parties involved in a transaction delegate to a third party (Monte Titoli) the management of collateral. Monte Titoli acts as a “neutral” agent and common custodian for the collateral held on behalf of both parties. This maximizes the efficiency of the process minimizing their investment in back office resources and IT.
(JDC)