Collateral Management

An Enterprise Collateral Management System for Compliance and Control

The implementation of Dodd-Frank, European Market Infrastructure Regulation (EMIR) and equivalent global regulations, together with the Basel III capital adequacy and liquidity framework, has transformed collateral management. Apex Collateral, our enterprise collateral management system, helps you comply with the regulations, achieve collateral optimization and handle the volume and complexity of collateral management activities.

  • Centralize the management, trading and optimization of collateral across the trading book on a single platform.
  • Comply with global collateral market reform regulations and handle the surge in volumes for bilateral and cleared collateral management.
  • Maximize returns and minimize costs by optimizing the allocation of collateral.
  • Avoid integration headaches with a single platform for securities finance trading and cross-product collateral management.
  • Achieve seamless connectivity to the new collateral market infrastructures.

Collateral Optimization

Powerful Collateral Optimization Algorithms That Minimize Costs

With regulations driving increases in collateral requirements, regulatory ratios driving demand for high-quality liquid assets (HQLA) and balance sheet constraints shrinking the pool of available assets, collateral optimization is a necessity. The Apex Optimizer collateral optimization solution provides a unique approach using numerical collateral optimization algorithms to allocate collateral holistically in a single run.

  • Rely on a collateral optimization solution proven to yield significant collateral cost reduction compared with simple sequential allocation methods.
  • Tailor a solution that reflects your costs and constraints to find the mathematically optimal allocation of collateral assets to requirements.
  • Gain efficiency and control with a solution that complies with collateral schedules, works out the required movements and automatically generates collateral trades.
  • Minimize the cost of pledged collateral and maximize your use of valuable assets and overall efficiency.
  • Allocate collateral across all bilateral, tri-party and cleared requirements as well as regulatory obligations.

Collateral Inventory and Trading

Collateral Inventory and Trading

To make informed collateral trading decisions in a timely manner, you need critical data at your fingertips. The Apex Collateral system provides a real-time view of your collateral inventory, aggregated market volumes and prices, and forthcoming corporate actions with a suite of trader tools to manage liquidity, lending and collateral.

  • Trade directly from a real-time global collateral inventory and manage your firm’s asset pool in the most optimal way.
  • Benefit from fast, flexible support for securities finance transaction types (securities lending and repo), in addition to collateral upgrade trades and standardized over-the-counter derivative transactions.
  • Gain support for bilateral and tri-party transactions, with standard interfaces to the major tri-party agents.
  • Improve the quality of collateral assets and liquidity.
  • Avoid inventory competition and integration problems with a single global platform for trading and collateral management.

Enterprise Collateral Operations

Cross-product Collateral Management for Efficiency and Control

With global market reforms yielding a tidal wave of regulations impacting collateral management, it is imperative to find efficiencies in collateral operations. The Apex Collateral system provides tailored, cross-product support for collateral operations, a centralized agreements repository and master templates for standard agreement types across securities finance, derivatives and master netting agreements.

  • Comply with the regulatory operations and reporting requirements.
  • Reduce manual input and errors by implementing straight-through processing (STP) workflows.
  • Improve operations monitoring and reduce costs by identifying bottlenecks.
  • Save time and money with exception-based processing that allows your collateral operations staff to focus on important issues.

Enterprise Inventory

Gain a Real-time View of Global Collateral Operations

Keeping track of collateral held, from whom, how it is posted and at what rate requires a universal view across products, asset classes and geographies. The Apex collateral management system allows you to tailor your account hierarchy to your firm’s structure, providing real-time visibility of collateral operations and the ability to drill down to underlying account details.

  • Gain access to flexible, forward-projected positions, along with a view of historical positions, helping you manage current and future collateral inventory.
  • Ensure that externally managed activities are reflected in the centralized collateral inventory positions in an accurate and timely manner.
  • Increase transparency with a universal view of assets across products, asset classes and geographies.

Margin Analytics and Risk

Advanced Insight for Enhanced Collateral Risk Management

To manage the liquidity impact of your collateral program, you need insight into future requirements and risk. The Apex Collateral system allows you to better understand the multidimensional aspects of collateral risk management with a collateralization dashboard and control panel that display real-time global exposures at both the client and counterparty level.

  • Improve collateral risk management by viewing exposure across products and agreement types.
  • Aggregate views by groups of clients or counterparties, legal entity, operations, and collateral centers and markets.
  • More accurately predict the impact of certain movements.
  • Reduce costs through more effective analytics and risk modeling.
  • Minimize the overall collateral margin requirement and free up assets for other uses by identifying the optimal counterparty or settlement location.