Last week Finastra, the leading fintech based in London, and Cloud Margin, the collateral management platform announced that they would be partnering to deliver an integrated collateral and margin management solution. By collaborating with CloudMargin, the creator of the world’s first and only collateral and margin management solution native to the cloud, Finastra will make this service available to market participants of any size through a Software-as-a-Service (SaaS) model.
This Collateral Management-as-a-Service solution will cover end-to-end collateral management workflows for variation and initial margin for over-the-counter derivatives, contracts, repos and securities to lending, To Be Announced (TBA) trades, and listed futures and options.
Investment banks of all sizes will be able to utilize the solution for flexible reporting and auditing processes, as well as accessing seamless connectivity to standard market utilities including AcadiaSoft, SWIFT, and the Margin Transit Utility from DTCC and Euroclear.
It is Finastra’s belief that, by optimizing and automating the collateral management process, users will realize significant efficiency savings while reducing costs. Speaking on the partnership, Michael Henssler, General Manager of Treasury and Capital Markets and Risk at Finastra said, “We’re seeing increased demand for collateral services from our customers. Our collaboration in delivering Collateral Management as a Service will help both buy-side and sell-side financial institutions globally meet time-critical regulatory deadlines and reduce the costs associated with today’s growing collateral requirements.”
To facilitate the ease of use, Collateral Management-as-a-Service will be powered by CloudMargin and accessible through Finastra’s FusionFabric cloud platform. Connecting to Finastra’s core treasury and capital markets solutions, the product will enable end-to-end straight-through processing of derivatives, transactions, and all associated collateral management workflows, from trade booking through to settlement.
Adding to this, Stuart Connolly, CEO of CloudMargin said, “The integration of our collateral management workflow tool into Finastra’s treasury and capital markets solutions creates a strong value proposition to support the full range of needs – from front to back office – of its broad client base.”
Users will be able to onboard swiftly through the Fusion Fabric cloud platform since this product is delivered through a SaaS model. To lower ownership cost, barriers, and risk to adoption, customers will not need to purchase specific hardware, installation, or support costs.
This partnership affirms CloudMargin’s commitment to creating strategic relationships that facilitate ease of global access to robust and comprehensive tools that evolve to meet the changing dynamics in the industry.