Mandated regulations such as Dodd-Frank and EMIR (European Markets Infrastructure Regulation), supervisory frameworks – BASEL III, BCBS (Basel Committee on Banking Supervision) – IOSCO (International Organisation of Securities Commissions) have changed the landscape of collateral management.
Collateral Management Solutions from Lombard Risk can assist with regulation compliance. We deliver a true cross-product solution that provides a single enterprise-wide platform to consolidate collateral across all asset classes, giving maximum control and visibility.
Lombard Risk COLLINE is a web-based solution that supports all of your regulatory and strategic collateral management needs anywhere your business operates, across all time zones. At the heart of the system is a powerful, configurable enterprise inventory manager that interfaces with your existing systems.
With this holistic understanding of the underlying assets, the system is then able to:
- Automatically calculate exposure and balance collateral needs
- Manage end-to-end margin call workflows
- Reconcile margin call disputes
- Calculate interest and produce fully configurable client statements
- Provide consolidated information in user-defined dashboards
- Support an array of sophisticated risk and trade analytics
What does COLLINE deliver to your business?
Integration – the system manages across products, information sources, agreement types and trading regions
Immediacy – the input of any new information triggers all calculations and process runs to provide real-time control of asset flows and risk exposures
Compliance – COLLINE is updated regularly to maintain pace with all margin call requirements, globally
Strategy – full forecasting and scenario analysis facilitates strategic planning across the business
Efficiency – the solution’s intelligent margin call workflow and fully configurable dashboards provide valuable management information, enabling timely decision-making
Full functionality, yet totally flexible.
COLLINE’s agile approach to collateral management is modular. Clients of all sizes and complexity are able to choose only the modules that are required to meet their specific business needs.
Our rapid implementation approach, flexible pricing models and broad industry expertise facilitates real competitive advantage for both buy- and sell-side organisations.
Supporting the global regulatory requirements for un-cleared derivatives in an end-to-end, highly configurable workflow based collateral solution for all OTC documentation types. VM and IM exception management and calculation at multiple levels with definable rules and constraints.
Repo plays an increasing role in financial markets supporting liquidity in bond and derivative markets, sourcing and mobilising collateral. COLLINE’s configurable and dynamic market-leading solution for Repo and Securities Borrowing and Lending supports front-to-back margin operations including optional mark-to-market calculation, rules based trade inclusion, settlement and pricing capabilities and exposure profiling and margin processing which can be configured for STP.
COLLINE Clearing supports clearing members, brokers and clients in the processing and real-time validation of clearing margin requirements. Calculations, cash flow components and workflows are configurable and component-based, enabling the user to define and adapt functional processes to multiple clearing house or broker/client models, including support for complex eligibilities, concentration and correlation constraints. Dashboards are provided for exposure validation and replication with full drill down functionality.
COLLINE’s ETD module is fully auditable and designed to eliminate manual processes. The solution automates key components of the margin process (margin workflow, collateral eligibility, concentration limits, aging and settlements). Firms using the module gain access to flexible workflow configuration and support for segregation and regulatory requirements.
COLLINE organises, manages and tracks creation and redemption process of ETF improving operational efficiencies. Mark-to-market collateral requirements are calculated, and COLLINE margin workflow automatically tracks settlement of ETF shares and collateral, providing ideal real-time view of risk and exposure.
The volume increase in margin calls in the new regulatory landscape has made STP critical to ensure success and reduction in operational risk. COLLINE’s source agnostic integration solution connects with multiple external platforms including various exchanges and clearing houses, messaging and reconciliation platforms and 3rd party service providers for advanced initial margin calculations and scenario analytics.
Quick and accurate calculation of collateral is key to ensuring compliance with recent regulations. COLLINE Calcs provides real-time initial and variation margin calculations for call calculation or validation of external or counterparty/broker/CCP marks. It provides pre-trade margin analytics of the potential margin impacts of trading venues, based on multiple configurable internal or industry standard calculation models and methodologies.
COLLINE Optimisation maximises financial efficiency, enables review of funding costs, and automates collateral sourcing and allocation processes. The optional module is integrated with agreement, exposure and inventory data, enabling real-time algorithmic calculation of the optimal available assets to be used. It takes into account configurable priorities and all legal and operational constraints. The user-friendly UI enables users to create bespoke optimisation rules, including flexible support for what-if scenario analysis.
Regulation is resulting in substantial cost pressures and managing inventory in a complete manner can provide significant efficiency benefits. COLLINE’s configurable real-time inventory management solution consolidates asset positions and values across both booked and fed inventory for all margining, liquidity and funding activities, providing inventories with forward ladder visibility up to 370 days.
Transparency and ease of access to data is considered critical in the financial markets in recent times. COLLINE’s web based portal enables service providers such as custodians, clearers and fund administrators to increase collaboration with their counterparties and clients by providing immediate on-line access to portfolios, status updates, and optional client approval controls.
COLLINE Delivery Options
Lombard Risk COLLINE can be hosted in existing client-owned and client-operated datacentres, as with any in-house application.
Lombard Risk COLLINE is cloud agnostic and is capable of deployments on client-managed public cloud platforms.
COLLINE as SaaS
Lombard Risk COLLINE is available in the cloud as a managed, Software as a Service (SaaS) delivery option. Lombard Risk COLLINE as SaaS relieves the burden of procuring, operating and securing infrastructure whilst leveraging the cloud to deliver rapid, secure deployments. Powered by Amazon Web Services (AWS), COLLINE as SaaS benefits from AWS’ secure, reliable, scalable and highly-performant global infrastructure. COLLINE as SaaS adheres to the AWS Well-Architected Framework and best practices for security, high availability, support, and automation.