Omgeo introduces counterparty risk management package, comprised of Omgeo ProtoColl, the firm’s automated collateral management offering, and Omgeo CrossCheck, which provides automated portfolio reconciliation.
Omgeo ProtoColl (formerly Allustra Kyros) provides an end-to-end, event-driven collateral and margin management workflow solution for clients to identify, negotiate and satisfy daily margin calls. By using this system, clients gain tremendous insight into their firms’ exposures and risk profiles. The offering handles all margining requirements, including over-the-counter (OTC) derivatives, repos, securities lending, leveraged trading, emerging markets and loan facilities.
Omgeo ProtoColl client Mn Services manages assets totaling € 65 billion (August 2008) and looks after pensions of more than 1.1 million individuals and more than 33,000 employers, making it significant European groups in the field of asset management and pension administration.
Omgeo CrossCheck (formerly GEM’s FpML Mediator technology), another component to Omgeo’s counterparty risk management application, is a centrally-hosted service that automates the comparison of portfolios of derivatives between investment managers, broker/dealers and other parties. Comparison of economic details (trade date, notional, rate, etc.), payment information and valuation of positions and portfolios is based on custom-defined matching policies.
Omgeo CrossCheck helps minimize the risks and consequences of unaligned portfolios in advance of payments, collateral calls, credit events and other situations.
“Automating the processes around collateral management and portfolio reconciliation allows the financial community to proactively handle every aspect of their portfolios of open transactions andcollateral balances,” says Tim Lind, managing director of strategic planning, Omgeo. “The entire industry stands to benefit from firms that prioritize counterparty risk management and we are pleased toenable it.”
“After reviewing some of the available solutions for collateral management, we determined Omgeo ProtoColl would best suit our needs,” says Muhittin Elvan, head of risk control, Mn Services. “Not only isthe technology and functionality the most comprehensive, but because the product was designed specifically with investment management and hedge fund communities in mind, it was the solution that best met our specific needs.”
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