Pershing has launched two new applications as part of its enterprise collateral management offering that automate the process of moving collateral between the custodian and Pershing Prime Services.
This service is available exclusively through Pershings NetX360, the companys technology platform for fund managers and investment professionals. Called PrimeConnect, the system provides transparency and control of collateral selection and movements to hedge fund managers using BNY Mellon to hold unencumbered assets. PrimeConnect40 also offers transparency and online collateral movement to 40 Act fund managers using the tri-party structure to support alternative strategies.
“Increasing concern over counterparty risk, coupled with the traditionally cumbersome and time-consuming collateral management process, has led many fund managers to be cautious when pledging collateral to their counterparties, said Gerry Tamburro, managing director at Pershing.
PrimeConnect and PrimeConnect40 not only eliminate the phone calls, faxes and emails, but they provide a clear window into the movement and management of collateral. Because these applications provide both a consolidated view of an overall portfolio and an online and real-time margin calculator, fund managers are able to more efficiently and effectively place collateral.
Pershing automates the increasingly important collateral management process through online and real-time applications, enabling fund manager clients to monitor and manage risk. Gerry Tamburro also notes, This technology represents the first time hedge funds and 40 Act funds have been able to deploy real-time collateral management tools to automate the processes of moving collateral between accounts and securing credit and risk approvals.
(JDC)