Standard Bank Buys Algorithmics Collateral Management Tool

Algorithmics announced today that Standard Bank Group of South Africa had licensed Algo Collateral as the margining software for their global credit collateral requirements. Standard Bank is a longstanding client of Algorithmics, having licensed their Algo Market solution in 1996,

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Algorithmics announced today that Standard Bank Group of South Africa had licensed Algo Collateral as the margining software for their global credit collateral requirements. Standard Bank is a longstanding client of Algorithmics, having licensed their Algo Market solution in 1996, but it is the first client for Algo Collateral in South Africa. Algorithmics says it now has 38 users worldwide.

“Effective collateral risk management is a priority within the Standard Bank Group,” says Deon Kruger, head of Global Collateral Management and Operations at Standard Bank. “Algo Collateral allows us to centralise the management of our global collateral function and facilitate the planned increase in the size and scope of the operation without a significant investment in technical or business resources.”

Standard Bank plans to roll out Algo Collateral globally across its operations, including Standard Corporate and Merchant Bank (SCMB) in Q1 2003, Standard Bank London (SBL) in Q3 2003, and Hong Kong and Brazil at later dates.

Algorithmics says Algo Collateral provides Standard Bank with a collateral platform to automate their collateral activity and minimize the operational risks associated with the margining process. “The signing of Credit Support Annexes (CSAs) is critical to a growth in business and the efficient allocation of capital. Following a thorough review of credit collateral risk management software in the marketplace, Algo Collateral was selected to manage any operational risks resulting from a collateral relationship and to act as a repository for all types of collateral agreements,” adds Kruger.

The bank reportedly liked the scalable architecture, integrated market and credit functionality, and regulatory compliance capabilities of Algo Suite. “We believe that Standard Bank’s global operations will enjoy significant competitive advantage as a result of the cutting-edge risk management software offered by Algo Collateral,” says Algorithmics South African Sales Manager, Shona Bell.

“Algo Collateral is established in international financial markets as the leading collateral management solution,” says Joe Balkovec, Director for Algo Collateral. “We are delighted to expand our existing relationship with Standard Bank and welcome the first South African member to the Algo Collateral community.”

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