Broadridge Financial Solutions has formed an alliance with UK software developer Lombard Risk Management under which Lombard’s collateral management system will be integrated into Broadridge’s applications and infrastructure services.
Broadridge reckons to process some $5 trillion of fixed income and equity trades each day, making collateral management a “natural extension” to its product line, said Michael Hopkins, president of securities processing solutions fixed income & risk at Broadridge. “By partnering with Lombard Risk, we will deliver collateral management solutions that will provide capital markets and investment management firms with greater control over the changing market framework and create true strategic and economic value.”
Lombard claims 30 of the Top 50 banks as clients, including “nearly half” of the banks operating in its UK home market. John Wisbey, founder and chief executive of the company, said that the Broadridge deal “will extend the use of Lombard Risk’s technology and our joint expertise within key markets and segments, particularly in the important North American market”.
Central to the alliance is the Colline collateral, clearing, repo and optimisation system. The web-based software handles end-to-end, cross-product (OTC derivatives, repos and securities lending) collateral management. It provides a consolidated solution for mitigating credit risk across multiple global entities with cross-product margining, Central Counterparty Clearing , optimisation, master netting, MIS reporting and electronic messaging.