SIX Launches Custody-Agnostic Collateral Cockpit09.25.2019
SIX has launched a new technology interface which will eliminate the challenges associated with collateral management. Called Collateral Cockpit, the interface will join- up fragmented front and back office information systems to give repo professionals the ability to view and manage collateral in real-time, on one platform. Initially, the technology will serve the Swiss repo market through an initiative driven by the Swiss National Bank.
SIX is preparing to launch the Collateral Cockpit, a revolutionary solution that will transform collateral management. https://t.co/8SutKhhkhX #collateralmanagement #securitiesfinance pic.twitter.com/0XI4lEE4AR
— SIX (@sixgroup) September 25, 2019
Currently, collateral is managed across the front and back offices through systems developed by a range of technology services providers. The complexity, and lack of visibility, brought on by this diversity of systems means human intervention is high, as constant monitoring and communication is needed across operations units to avoid errors. The Collateral Cockpit eliminates these risks and challenges, unifying critical information across the various functions in one place.
At the center of the cockpit’s innovative capabilities is an inventory that provides a holistic view across all processes, including collateral forecasts, usage, valuation and purpose. As a result, users can automate processes, such as asset allocation, conduct asset substitutions quickly, and enable informative alarms to alert on failed deliveries and offer explanations on how to overcome them. Additionally, by interpreting data from across the various functions the platform intuitively builds to-do lists relevant to each person based on role. Stakeholders across the front and back office, as well as treasury functions, can access information and actions only relevant to them, through pre-defined, permissioned user profiles.
Commenting on the Collateral Cockpit, Valerio Roncone, Head Future Business – Managing Director at SIX, said: “The collateral management process, done properly, has always been a complex, fragmented process. However, with the Collateral Cockpit, we finally put repo professionals in the driver’s seat. Through harnessing the power of automation and intelligent data practices, they can now let technology take care of the mundane such as monitoring and adjusting, and focus on the tasks relevant to them. Not only will it improve the repo functions’ efficiency, but it will also empower them to be more accountable and avoid human error.”
Initial margin for centrally cleared markets increased by $300bn over March 2020.
More buy-side firms will be caught by the new rules.
Exposures and margin calls can be monitored in real-time.
Reducing costs associated with funding and liquidity is becoming increasingly important.
Clients can agree collateral on a real-time basis and increase efficiencies.