7 December 2017
triResolve Margin has been adopted by a vast variety of firms globally, including dealer banks, regional banks, funds, asset managers, asset servicers and corporates.
Our recent case study highlights how we worked with a major asset manager to streamline their collateral process.
Client type: Major international asset manager with assets in excess of $350bn
Existing collateral support: In-house spread sheet based solution for calculation of margin. Emails for exchange of margin calls and triResolve for dispute resolution.
Collateral profile: In-scope for VM requirements. Trading OTC derivatives in all major markets across several hundred funds, with several thousand collateral agreements.
The company’s internal tools provided limited collateral management capability. This created daily challenges to manage data feeds from multiple trade and market systems, and data quality issues were frequent. The process was time consuming and required a high-level of user input and diligence. As a result, the organisation had an overreliance on counterparty calculated margin amounts and reporting, and felt they were not fulfilling their own risk management objectives.
They needed to update their processes. However, faced with a significant increase in collateral agreements due to the uncleared margin rules, any new solution needed to be fast to implement, scalable and facilitate STP.
Following an RFP process, triResolve Margin was selected as the solution that best suited their needs. Not only was it deemed to meet all functional requirements, it fitted with the company strategy of adopting web-based solutions.
Key stakeholders identified a number of key advantages in triResolve Margin. The main drivers included its ability to proactively support the uncleared margin rules, rather than being a retro-fitted product, and unlike other offerings, it provided a seamless way to manage margin call disputes. It also offered out of the box access to the AcadiaSoft’s MarginSphere™ messaging service, which in turn would enable automated connectivity to their broker counterparties.
Due to the large volume of collateral agreements, onboarding was phased by a combination of fund and broker. The first phase, in excess of 600 collateral agreements, was live within 2 weeks. The entire onboarding process was managed by the triResolve service management team who took responsibility for the key tasks of collateral agreement set-up and counterparty connectivity and approval in MarginSphere.
Subsequent phases delivered automated margin connectivity for all funds and corresponding dealers, which equated to several thousand collateral agreements. In a matter of weeks they were able to decommission their old manual processes and achieve unprecedented levels of STP.