Lombard Risk Management, a provider of regulatory reporting platforms, has launched a new cloud-based collateral management system to simplify collateral in the buy-side world.
The product, dubbed AgileCOLLATERAL, is targeted at asset managers, buy-side brokers, pension funds, corporates and investment firms. It will help buy-side clients meet the stricter uncleared collateral margin requirements expected to be phased in from around March 2017
The platform offers direct connections to electronic messaging services and its optimisation algorithms allow firms to maximise the use of assets.
It provides security through the elimination of spreadsheets, and mitigates risk associated with manual input and calculations, the company said.
Automated validation checks reduce the number of manual errors while its intuitive dashboard and advanced UI provides visibility over workflow on all collateral activities, the company added.
AgileCOLLATERAL is designed to be delivered rapidly through either a license or subscription fee model and can be up and running in as little as a day, the company said in its press release.
“It is intuitive, reducing the need for training, and modular, adding asset classes as needed, scaling up over time to handle more complexity and volume, and implemented in layers to control costs to match business needs,” the statement added.
Lombard Risk CEO Alastair Brown said: “Buy-side firms face numerous collateral challenges particularly as they have to meet new regulatory requirements expected to be phased in around March 2017, which will see margin requirements and liquidity ratios increase. This means they must look at new ways to meet these challenges while keeping control of headcount, minimising fixed cost increases and reducing the impact on fund performance.
“AgileCOLLATERAL gives a greater level of control over operational processes due to its rapid implementation, flexible pricing models and low cost deployment options. This allows firms to reduce the high cost of collateral management and redirect resources to better serve investors.”