Finastra teams up with CloudMargin to deliver Collateral Management as a Service

By Megha Bhattacharya

Finastra has signed a global partnership with CloudMargin in a bid to deliver an integrated collateral and margin management solution to market participants via a SaaS model.

CloudMargin-powered Collateral Management as a Service, available through Finastra’s FusisonFabric.cloud platform,  connects to the FinTech’s core treasury and capital markets solutions, facilitating end-to-end straight-through processing of derivatives transactions, and all associated collateral management workflows, from trade booking through to settlement.

“Both CloudMargin and Finastra are committed to driving transformational change in collateral management – helping our customers experience the benefits of modern, SaaS technology that provides agility as well as operational and cost efficiencies, continuous updates and fast implementation,” said Michael Henssler, General Manager, Treasury & Capital Markets and Risk at Finastra.

“We’re seeing increased demand for collateral services from our customers. Our collaboration in delivering Collateral Management as a Service will help both buy-side and sell-side financial institutions globally meet time-critical regulatory deadlines and reduce the costs associated with today’s growing collateral requirements.”

Collateral Management as a Service offers covers end-to-end collateral management workflows for variation and initial margin for over-the-counter (OTC) derivatives contracts, repos and securities lending, To Be Announced (TBA) trades, and listed futures and options. It offers flexible reporting and auditing processes and provides seamless connectivity to standard market utilities including AcadiaSoft, SWIFT and the Margin Transit Utility (MTU) from DTCC and Euroclear, as well as other third-party services.

Stuart Connolly, CEO of CloudMargin said, “We’re delighted to provide the technology for this critical component of Finastra’s offering. The integration of our collateral management workflow tool into Finastra’s treasury and capital markets solutions creates a strong value proposition to support the full range of needs – from front to back office – of its broad client base. Through global strategic partnerships that complement our geographic footprint and market penetration, CloudMargin is increasingly powering the industry on collateral management, making it as easy as possible to have access to robust and comprehensive tools that are ever-evolving to meet the changing dynamics in the industry and the most state-of-the-art technology available.”