“In 2020 a crack fintech commando unit were sent to prison by a military court for a crime they did not commit. These people promptly escaped from maximum security stockade to the Los Angeles underground. Today, still wanted by the government, they survive as soldiers of fortune within collateral management. If you are struggling with margin call volumes, significant adverse operational capacity issues, if nobody else can help, and if you can find them…………maybe you can hire…. The VERMEG STP Team…………”
Whilst the above jovially references the opening gambit form cult TV programme The A team, COVID-19 and its impact on society and the financial markets is an extremely serious issue.
The financial markets have been under an enormous amount of pressure, volatility and uncertainty since the COVID-19 outbreak. The global markets have tumbled more times than an acrobat during a circus performance, thus causing an unprecedented rise in margin call volumes. This has seen many institutions antiquated processes creaking at the seams and struggling to cope due to siloed and manual processes. Regardless of the size of the organisation, automation and the increase in levels of Straight Through Processing, or STP for short, are a key mechanism utilised to alleviate the operational burden in such stressed market conditions.
However, the use of STP is often limited by both internal processes and old technology. Whilst this may also be perceived to be a costly, time consuming, multi- year project, VERMEG are able to assist with their plug and play, configurable drool based STP rules. VERMEG have been providing STP solutions to their clients for many years and are able to provide institutions with a robust solution that enables extremely high rates of STP via the use of quality, cut-off and margin rules.
As a result, VERMEG STP functionality has provided many institutions with the opportunity to deliver real cost & efficiency benefits. However, I know what you are thinking……. if it’s too good to be true then it usually is right? WRONG….and you don’t just have to take my word for it! The below case study, and the associated rates of STP, have been both provided and presented by our largest COLLINE client, a large tier one bank, whom have more than 70,000 active agreements across multiple asset classes….impressive I hear you say!
95% Automation Achieved by “A Large Tier 1 Bank”
- 100% of Statements are prepared automatically
- 86% of Counterparties eligible for automatic notification:
– 60% notified automatically before 7am
– 22% notified automatically before 10am
– 4% managed as exceptions
- Some clients are excluded from STP as they require manual intervention of customisation
– 14% not eligible for automatic notification due internal rationale or process
- 95% of eligible Counterparties are notified with zero manual intervention
Are you are struggling with margin call volumes? Are you experiencing significant adverse operational capacity issues? Are your processes and systems at breaking point? If so…. keep calm…. VERMEG can help YOU!
Contact us to find out more.