Collateral management technology provider CloudMargin has announced that it is the first cloud-based collateral management solution to become a member of SWIFT.
The group said that joining the financial messaging services network will provide its clients with direct market connectivity through SWIFT – consolidating multiple collateral pools, margin messaging, automating collateral deliveries, receipts and substitutions and monitoring settlements.
SWIFT connection will enable direct and automatic access to financial institutions worldwide, instead of using emails, exchanges of spreadsheets and faxes. The collaboration offers a single functional and cost-effective one-stop-shop to automate collateral processing with multiple banking partners, cash agents and custodian networks.
Firms can use a single platform with a single user interface to calculate and validate exposures; exchange messages and negotiate figures with their counterparties; maximise and optimise inventory usage across multiple collateral pools; send delivery, receipt and substitution instructions direct to market and monitor collateral settlements. Each of these activities is in real-time with exception-based processing, maximum straight-through processing (STP) and a full audit trail as back-up.
“‘Game changer’ is greatly overused in the capital markets technology world but that’s exactly what we’ve developed, said CloudMargin’s founder, Andy Davies. “Never before has this level of automation and end-to-end connectivity been seen in an off-the-shelf application that only requires a single, simple, low-touch integration.
Keith Tippell, SWIFT’s head of securities, added: “CloudMargin’s adoption of SWIFT connectivity and standards is a great example of a vendor business partnership driving further automation and efficiency for our community. This particular engagement forms part of SWIFT’s wider global efforts to assist members with STP programmes for collateral management.”
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