Post-trade solutions provider SmartStream Technologies Ltd. has acquired the IBM Algorithmics Collateral solution products in a transaction which was concluded on January 31, 2015.
All future information regarding the IBM Algorithmics Collateral products will be available from the SmartStream Technologies’ website to which a redirection has been added from the corporate site of the algorithmic systems development division of International Business Machines Corp. (NYSE:IBM)
TLM Collateral Management is a comprehensive, automated data management solution that helps financial institutions reduce operational risks associated with collateral management programs. It offers a variety of functions to support the increasing use of collateral within the local and global banking community, with coverage for cleared and non-cleared over-the-counter (OTC) Derivatives Margining, Repo Margining and Securities Lending Margining.
It also helps reduce credit and operational risk with best practice approaches for comprehensive collateral management. The solution is ideal for all types of financial institutions including banks, asset managers, hedge funds, custodians, central clearers, and service providers. TLM Collateral Management offers an event-driven, exceptions-based workflow to manage the end-to-end activities and processes associated with collateral management.
The solution is an integral component of SmartStream’s TLM platform servicing downstream liquidity and control. The solution is able to take advantage of SmartStream’s global reconciliations and exception management solutions, as well as being available as an integral part of the Reference Data Utility. The TLM platform architecture offers a wide range of deployment options.
TLM Collateral Management provides anticipation and mitigation of operational risk and credit risk, allows risk officers and collateral managers to proactively plan risk mitigation strategies.
In addition, the system helps reduce regulatory capital and allows companies to apply the benefits of collateral in ways that can lower regulatory capital charges. It has a powerful intuitive interface which enhances risk-informed decision making by presenting clear and logical paths for users, along with automated data capture and analysis to help meet the diverse needs of multiple collateral management programs.
As a enterprise system, it is designed to streamlne back office workflow, automating key tasks associated with margin call processing, including data capture, validation, calculation and processing, and enables automated selection of collateral assets to enhance automation and reduce funding costs.
Interaction with regulators is a key requirement these days, with new directives such as Dodd-Frank, EMIR and Basel III, who require banks to manage capital reserves and collateral when entering derivatives trades, thus the TLM Collateral Management system is designed to ensure alignment with such rulings.
For the official announcement from IBM, click here