Transcend rolls out collateral eligibility and analytics platform

The platform will feature connectivity to tri-party agents, CCPs, and central banks, and can be integrated with each client’s internal systems.

By Chris Lemmon

Transcend, a provider of funding, liquidity and collateral solutions, has launched Eligibility Central, a platform for collateral eligibility information and analytics.

“As the capital markets community increases focus on enterprise collateral management, optimization, and mobilization strategies, the need for harmonization of collateral eligibility schedules is clear,” said BJ Marcoullier, head of business development at Transcend. “However, because the collateral ecosystem is so large and bifurcated, we regularly hear it is taking industry players far too long to create an eligibility hub internally. Eligibility Central helps firms streamline complex collateral strategies and accelerate time-to-value timelines.”

The platform will feature a single source of harmonised eligibility information, with connectivity to tri-party agents, CCPs, and central banks. Services can be integrated with clients’ internal systems for ISDA/CSA and bi-lateral finance, while an intuitive user interface streamlines the eligibility capture and modification.

Users will receive in-depth information on eligibility criteria across clients’ portfolio of securities, with the ability to compare against multiple destinations to confirm that they realise the greatest funding value from their assets.

“Connecting the collateral ecosystem across internal systems and external providers is a critical need in the marketplace,” said Todd Hodgin, Transcend’s global head of product development. “Eligibility Central helps clients realise their financial performance goals by delivering a solution that supports better collateral utilisation decisions.”

Global Custodian recently caught up with Trascend CEO, Bimal Kadikar, to discuss the challenge of optimising collateral use across the enterprise and integrating ESG criteria into collateral management.

Speaking on the challenges faced by the industry, Kadikar said the biggest area for improvement is the enterprise-level asset optimisation space. “We grew up as silos, we were all very proud of the silos, and all the systems, platforms and operational processes are based on silos,” he explains.

“Equity sec lending, fixed income repo, derivatives margining, treasury, agency lending, prime, FCM – all have fairly large ecosystem and processes and all technology. When you think about things like your funding parameters to your collateral requirements, to your liquidity implications, they cut across all of them. Most of the industry has not figured out how to solve for this, and that’s the space that we operate in.”