Mitsubishi UFJ Trust & Banking Corporation, a wholly owned subsidiary of Mitsubishi UFJ Trust & Banking Corporation, Tokyo, Japan, has selected SunGards Asset Arena Portfolio Management to help streamline its securities lending operations.
Mitsubishi UFJ currently uses SunGards Global One, a multicurrency international securities lending system, for its core processing. Asset Arena Portfolio Management, which will integrate with Global One, is a Web-based global portfolio management offering that combines trade order management, decision support, compliance, performance measurement, accounting and settlement.
Through an automated interface between the two SunGard applications, all cash collateral activities in Global One, including the processing of new loans, returns, reallocations and rebates, will be automatically passed intra-day to Asset Arena Portfolio Management. This will provide for the timely recognition of cash collateral portfolio balance changes, allowing Asset Arena to perform time-critical trade allocation, trade compliance and real-time cash balance reporting.
Straight-through processing (STP) enables Asset Arena Portfolio Management to provide Mitsubishi UFJs securities lending operations with an automated receipt of daily yield rates in Global One helping enable the proper allocation of investment earnings to securities lending client accounts.
“In managing the cash collateral for our securities lending operations, SunGards Asset Arena is a great complement to Global One, as it provides new efficiencies for processing intra-day cash investment accounting for new loans, returns, mark adjustments and rebates. Asset Arena Portfolio Management also helps meet our need for accurate availability of cash balances and cash earning yield rates, while helping to ensure that the compliance requirements are met,” says Hiroshi Nakamura, senior vice president, Mitsubishi UFJ.
“In addition to serving the core portfolio management needs of our customers, SunGards Asset Arena Portfolio Management can meet a diverse range of investment servicing requirements. Asset Arenas ability to help streamline securities lending operations is a good example of this, as illustrated by Mitsubishi UFJs implementation. We look forward to adding greater value in our new expanded relationship with Mitsubishi UFJ,” adds Doug Morgan, president of SunGards institutional asset management business.