09.25.2019

SIX Launches Custody-Agnostic Collateral Cockpit

09.25.2019
Shanny Basar

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.

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.”

Source: SIX

Related articles

  1. OSCAR reduces the time to set up and negotiate an individual collateral basket from weeks to hours.

  2. Margin Calls Expected to Increase
    Daily Email Feature

    FTX Defends Margin Proposal

    Proposal involves a real-time margining system combined with auto-liquidation.

  3. Clearstream Focuses on Collateral Mobilisation

    CFTC staff are holding a public hearing on 25 May on FTX's proposal to change margining.

  4. Buy Side Forced to Review Collateral Arrangements

    Direct clearing offers more efficient management of cash and securities collateral.

  5. Clearstream Focuses on Collateral Mobilisation

    Firms are having to find new sources of financing or reduce positions.