IHS Markit Ltd. (Nasdaq: INFO), a provider of information, analytics, and financial markets data has unveiled a new end-to-end solution, Collateral Manager, designed to help satisfy a range of functions including margin calculations and disputes. The launch of the new solution coincides with a shifting regulatory field, with a greater emphasis being put on margin requirements for both cleared and un-cleared over-the-counter (OTC) derivatives transactions.
In particular, Collateral Manager acts as a cloud-based solution that will help calculate margin, settling margin calls, and managing margin disputes. Its new functionality will also help foster streamlined onboarding and the deployment of improved margin capabilities, which can be done without relying on software updates to legacy systems.
Multi-functional Use for Key Financial Instruments
The introduction of Collateral Manager also comes out of a partnership between IHS Markit and CloudMargin, one of the industry’s foremost collateral and margin management solution providers.
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Collateral Manager will also cover a diverse set of instruments, including cleared and non-cleared OTC derivatives, repos, stock loan, futures, options, and TBAs. The new solution will also help meet a growing demand from around the industry, which requires new tool-kits and automated margin capabilities amidst shifting regulations.
The automated processing of margin calls, and other means will also seek to provide improved transparency for audit and risk purposes, which will be instrumental as firms look to bolster their risk management capabilities. Collateral Manager will also draw upon a diverse pool of trade data, derivatives valuations, and pricing cross multiple types of eligible collateral, tapping into IHS Markit’s existing service suite.
According to Laura Kholodenko, Director for Portfolio Valuations at IHS Markit, in a statement on the launch, “Collateral Manager offers the unique ability to link the disparate information that is critical to a straight-through collateral process, making IHS Markit a one-stop shop for margin and collateral services. Achieving an automated collateral program is a growing priority as managing margin becomes a larger and more complex challenge.”
The implementation of Collateral Manager is the second rollout of a new solution to help satisfy regulatory challenges in as many months. Last month saw the release of IHS Markit’s Outreach360 platform, part of an effort to comply with new EU rules that are set to shake up the old practices of repapering between counterparties. In this instance, the upcoming MiFID II legislation helped serve as the driving factor, with its new tool also helping companies better manage counterparty documentation.