The Broadridge Collateral Management system provides an enterprise-wide, cross-product collateral management solution for securities lending, repo, and bilateral/cleared OTC/exchange-traded derivatives collateral. The solution offers the ability to view exposures in real time across business lines, providing a centralised view of collateral needs versus collateral availability. It also provides tools to automate manual processes, mitigate operational risk more effectively and respond more easily to regulatory change, while making the optimum use of balance sheet and retaining vital liquidity.

Uncleared Margin Rules Implementation

CHALLENGES

• Increased costs – The requirement to post more collateral more often is putting cost pressures on trades that do not have automated margin calls
• Liquidity constraints – Finding access to the appropriate collateral
• Uncollateralised exposure - Increase risks associated with breaking the chain of collateral exchange after collateral fails and the current non-automated solutions to solve
• Pressure on resource - The increase in margin call volumes required under UMR have meant some firms have had to redirect valuable resources towards recruitment, and therefore driving up operational costs
• Connectivity limitations- Enhanced and increased vendors providing data and services means firms need to connect to multiple systems to keep up with competitive pressures

UMR MODULE

• Universal interface to SIMM/GRID calculation providers
• Standard Initial Margin model
• Helps firms meet regulatory compliance obligations
• Business control on delivery through triparty or via third party custody
• Acadia margin calls
• Supports all triparty agents
• Consolidates overall view on Initial Margin and Variation Margin