Announced at CeBIT 2002
LONDON/HANOVER, March 13 /CNW/ - Algorithmics Incorporated, a worldwide leader in enterprise risk management solutions, today announced that its Algo Collateral (Sentry) solution for collateral management would form the basis for a ground-breaking new service from a leading global financial services firm, to be hosted and delivered via IBM's Global Services data centres.
Aimed at mid-tier banks and asset managers, including hedge funds, the service will offer a range of collateral management functions, delivered in 'pay as you go' (utility) manner, reducing or eliminating the need for the firm's clients to increase staff and invest in expensive infrastructures to manage their collateral agreements.
"To provide the functionality required for multi-level engagements, we required 'best-of-breed' collateral management software and a stable, reliable
and fast network, with the processing infrastructure to deliver it," said a spokesperson for the firm. "The combination of Algorithmics and IBM met our requirements, to deliver a range of standardized services globally, in a seamless, scalable and cost-effective manner. With today's announcement, 'big
bank' collateral services will now be available to a far wider range of users."
Demand for dedicated, in-house collateral management systems is estimated to grow from US $54.5 million in 2000 to reach US $134 million in 2005, according to Meridien Research. The majority of these expenditures would be result from application purchases by the world's 400 largest banks and financial institutions. The first customer for the joint Algorithmics-IBM collateral management service says its initiative will lessen the need for similar investments by thousands of middle-tier banks, asset managers and corporates worldwide.
"Our client has moved quickly to fill the growing need for a range of collateral management service levels, from initially providing the functionality of Algo Collateral (Sentry), to delivering a more extensive service that sees them making collateral calls, monitoring agreements, including valuation and facilitating movement of collateral with counterparties, etc. - in effect offering the benefits of a full-scale collateral program at lower costs through a utility model," says Michael Zerbs, Chief Operating Officer, Algorithmics.