Turning Collateral Management Into A Revenue Opportunity
Posted: 15 June 2015 | Source: Murex
MUREX SAS (“Murex”), the leading provider of cross-asset trading, risk, and back-office solutions, announces the release of its fully overhauled MX.3™ for Collateral Management solution, designed to better support sell-side and buy-side financial institutions in creating an effective pre- and post-trade collateral optimization framework.
The most recent regulatory developments (BCBS/IOSCO, Basel III) are reinforcing collateral management as a core function of the capital markets value chain, requiring a centralized and unified infrastructure to overcome inefficiencies of internal and external fragmentation.
Available as an enterprise standalone solution or integrated with MX.3 trading, risk and back office solutions, MX.3 for Collateral Management provides a single framework for the support of listed, OTC, OTC-Cleared & securities finance margin process and collateral optimization. 15 banks are currently deploying the solution worldwide.
Etienne Ravex, Murex Collateral Product Manager, comments on the current marketplace: “Legacy systems cannot adapt fast enough to challenges such as real-time initial margin calculation or funding valuation adjustment for pre-trade decision making, collateral inventory optimization or exploding volumes of calls to be processed. Practitioners need adaptable real-time solutions along the full value chain”.
The new solution introduces a flexible margin engine supporting pre-trade initial margin, a real-time and settlement-aware collateral inventory, an optimization engine for cheapest-to-deliver determination and collateral assets rebalancing, automated portfolio reconciliation, as well as native connectivity with recognized servicers such as AcadiaSoft, SWIFT for collateral messaging suite, and TriOptima.
“The main purpose of our innovation strategy is to derive intricacies of technology evolution so our clients can focus on remodeling their business strategies. Our collateral management solution is designed as a transformation trigger to convert costs and constraints into value creation while delivering compliance as a standard.” says Maroun Eddé, Murex Group CEO.