Finastra and CloudMargin collaborate for collateral management-as-a-service

The two vendors will offer a joint solution facilitating end-to-end straight-through processing of derivatives transactions and collateral management workflows.

By Joe Parsons

Technology firms Finastra and CloudMargin have partnered on delivering an integrated collateral and margin management solution through a software-as-a-service (SaaS) model.

Collateral Management as a Service, powered by CloudMargin and available through Finastra’s platform, connects to Finastra’s core treasury and capital markets solutions, facilitating end-to-end straight-through processing of derivatives transactions, and all associated collateral management workflows, from trade booking through to settlement.

The solution aims to automate and optimise the collateral management process, and help users reduce costs and realise significant efficiency savings.

“Both CloudMargin and Finastra are committed to driving transformational change in collateral management – helping our customers experience the benefits of modern, SaaS technology that provides agility as well as operational and cost efficiencies, continuous updates and fast implementation,” said Michael Henssler, general manager, treasury and capital markets and risk, Finastra.

“We’re seeing increased demand for collateral services from our customers. Our collaboration in delivering Collateral Management as a Service will help both buy-side and sell-side financial institutions globally meet time-critical regulatory deadlines and reduce the costs associated with today’s growing collateral requirements.”

Collateral Management as a Service covers end-to-end collateral management workflows for variation and initial margin for over-the-counter (OTC) derivatives contracts, repos and securities lending, To Be Announced (TBA) trades, and listed futures and options.

The service is suitable for banks and buy-side firms of all sizes, offering flexible reporting and auditing processes and provides seamless connectivity to standard market utilities including AcadiaSoft, SWIFT and the Margin Transit Utility (MTU) from DTCC and Euroclear, as well as other third-party services.

 “The integration of our collateral management workflow tool into Finastra’s treasury and capital markets solutions creates a strong value proposition to support the full range of needs – from front to back office – of its broad client base,” added Stuart Connolly, CEO of CloudMargin.

“Through global strategic partnerships that complement our geographic footprint and market penetration, CloudMargin is increasingly powering the industry on collateral management, making it as easy as possible to have access to robust and comprehensive tools that are ever-evolving to meet the changing dynamics in the industry and the most state-of-the-art technology available.”

Last month, CloudMargin secured $15 million from Citi, Deutsche Bank, and European exchange operator Deutsche Börse. The cloud-based services vendor said it plans to use the funds to further enhance its platform and technological capability, as well as expand its footprint in the US and Asia with additional sales and client services resources.