CloudMargin has connected to nearly 60 custodians globally for cash, securities and third-party SWIFT settlement, as it helps firms prepare for the final phases of Uncleared Margin Rules (UMR).
The cloud-based collateral and margin management solution provider said it is also connected to the four major tri-party agents.
The ascension of the firm has been impressive given its seven-years of existence. In that time the FinTech has raised $35 million through equity issuance with funding coming in from the likes of Citi, Deutsche Bank, and Deutsche Boerse.
The London-based organisation has been focusing on UMR in recent months as phase five was rolled out for firms that have just fallen under that scope.
“We successfully onboarded a whole host of clients that fell under the scope of Phase 5 onto UMR-ready features to ensure compliance in time for the 1 September deadline that just passed,” said Simon Millington, head of business development at CloudMargin.
“A number of these clients wanted to connect to custodians, and we anticipate this will be a growing trend as we move into Phase 6 that impacts so many more firms. By continually adding custodians to our market-leading network, we’ll help our clients meet the challenges of connecting not only to their third-party custodian of choice but also to those of their counterparties for UMR. For banks, in particular, with a large number of in-scope counterparties, this capability can significantly reduce the connectivity burden. For the buy-side there is also significant appeal; they can leverage our triparty connectivity for their bank counterparty relationships.”
Other CloudMargin platform enhancements since the UMR Phase 4 deadline include the rollout of a robust reporting suite that gives firms open access to centralised, structured trade and collateral data, facilitating their ability to meet regulatory reporting requirements and achieve greater credit risk transparency.
CloudMargin says its network now includes almost 60 custodians as it facilitates UMR readiness
Collateral and margin management specialist has connected with a significant number of custodians given its relative infancy in the space.
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