SmartStream Technologies the financial Transaction Lifecycle Management (TLM)® solutions provider, today announces a new solution, Eligibility API for Collateral Management Optimisation – a faster and more efficient way to get eligibility information contained within collateral agreements like CSA, GMRAs and OSLA’s, for both pre and post-trade collateral optimization.
The impending UMR (Uncleared Margin Rules), phase 6 regulatory regime, will see an increase in margin calls and a squeeze on collateral assets. This will cause a rise in the demand for High Quality Liquid Assets. In addition, with Interest rates forecast to rise – firms are looking at pre and post-trade optimization so as to efficiently use scarce HQLA and Cash. SmartStream, a new solution that allows firms to publish collateral eligible for every legal agreement, will allow them to then consume their optimization engines.
Optimizing your business is all about being able to quickly and easily access the eligibility schedules and repo collateral system. It is crucial to quickly and easily access information about what instruments are eligible as well as what haircuts they apply across all agreements. SmartStream’s new API allows fast and easy access to collateral, including the ability to upgrade seamlessly. The new API allows for the instant sourcing of eligibility information.
Jason Ang, SmartStream’s Program Manager, Collateral Management: “We realize the UMR deadline is fast approaching, and we have made it easy for clients to deploy our new solution, and to manage future versions without the need for lengthy implementation projects. The collateral solution is also less expensive to own if it has a public API strategy. The demand for this new API is high and we are having conversations with the major banks on how they can use our eligibility to optimize their collateral in preparation for the future”.
SmartStream’s TLM Collateral Management is a comprehensive, automated data management solution that helps financial institutions lower the operational risks associated with collateral management programmes. It covers OTC derivatives margining, securities lending margining, repo margining, and cleared and uncleared OTC derivatives margining.