SunGard Securities Processing today unveiled Margin Advisor, a processing solution that delivers real-time margin information on equities, fixed income, and listed derivatives. Margin Advisor continually analyzes margin account status, and instantly generates alerts and events for automating resolution processing. Margin Advisor helps a firm’s margin operations to monitor and predict problems and outcomes, supports margin rules from all of the major exchanges worldwide, facilitates resolution workflow, and integrates with any operations processing application. Margin Advisor enables broker-dealers and futures commission merchants to proactively handle same-day position and market changes, helping them to provide better service to customers and reduce risk.
Margin Advisor goes beyond automated margin calculations and incorporates real-time, proactive event resolution capabilities, acting as a single reliable solution for handling margin effects on equities, security futures, central counterparties (CCPs), fixed income and derivatives instruments. It enhances straight-through processing by monitoring all margin activity and position price changes in real-time, to alert margin operations to problems at the point of origin in order to reduce the firm’s exposure. It then analyzes the effect on all margin accounts to create events for margin operations to take proactive action based on the changes in account status.
“Margin Advisor is the first true, continuous and proactive margin solution, providing a constant stream of intra-day calculations and events with a powerful, rules-based workflow for a more proactive process,” says Mike Nemerowski, senior vice president of strategic planning at SunGard Securities Processing. “The system’s ability to manage event workflow and prevent margin risk at both the customer and firm levels is essential in today’s global markets.”
Margin Advisor also performs complex model calculations across an entire firm to identify accounts that are susceptible to intra-day volatility for a particular security, sector, index, currency or country. The model function creates a watch list of accounts that are monitored in real-time throughout the day.
Integrating with back office, front office, or order management applications, Margin Advisor can be used with multiple applications simultaneously to provide the distinctive advantage of consolidating customer relationships and providing real-time monitoring across the enterprise. It is a multi-currency application that supports the major margin algorithms used by global clearinghouses and exchanges worldwide. Scheduled for release in December 2002, Margin Advisor can be deployed as an outsourced service, or hosted internally as a margining component made available to internal traders over the network or to client traders via an intranet portal. Margin Advisor runs on a Sun Microsystems (Nasdaq:SUNW) infrastructure with the Sun Open Net Environment (Sun ONE) platform.
Margin Advisor is part of the new SunGard Stream product suite and is powered by the three fundamental Stream technologies. At the heart of the Margin Advisor is StreamCore providing a continuous data store. StreamEvents delivers sophisticated event tracking, processing and management of all margin events and subsequent actions, and StreamBridge provides centralized communication with external entities for acting on events as they occur.