The costs associated with margining, collateral reporting and central reporting are on a continued rise and firms are looking to enhance their operating models and revamp their legacy collateral management systems to stay competitive in the marketplace and protect their revenue margins. In the current market scenario, financial institutions are hampered by lack of available collateral to meet demands, lack of frameworks which can handle increased margin call activity and lack of proper systems which can monitor and manage risk associated with collateral management activities.

OneMARKET's collateral management module enables financial institutions to simulate the impact of market events for better managing the risk associated with collateral management activities. It also enables better real-time management of Margin Call activities and addresses all inherent risks in the collateral management business.

Collateral Management

Salient Features of the Collateral Management Module:

  • Robust Collateral Processing capability - Enables facility creation, facility group creation, linking of portfolios to facility groups, setting client level limits, pledging of collateral, and computation of net collateral margin value; Provides exposure limits at various levels
  • Provides support for simulation across categories (Customer, Price, Assets etc.)
  • Robust Risk management and control is enabled through online exposure monitoring, credit risk monitoring, market risk monitoring, risk
  • concentration controls, exposure controls and proactive alerts
  • Multi-level risk concentration controls - Issuer, Security and Customer Security
  • Multi-dimensional exposure controls across currencies, markets and products at customer level
  • Proactive Alerts on Margin call and Sell-out positions
  • Comprehensive Reporting Framework including support for Exception reporting and Liquidation Reporting