TORONTO/COPENHAGEN, DENMARK, Oct. 17 /CNW/ - Algorithmics Incorporated, a world leader in enterprise risk management solutions, today announced that Danske Bank of Denmark has licensed Algo Collateral to be the software platform of choice to manage their OTC derivative and repo-margining activities.
The deal marks the first client for Algo Collateral in Scandinavia and reinforces the product's standing as the most widely used solution for collateral management with 36 global clients. Danske Bank is already an Algorithmics client, having licensed the Algo Market risk management solution in June 2001.
Algo Collateral will replace Danske's existing in-house system. "Our current resources and collateral management processes were overstretched," said Mogens Dalhoff, First Vice President of Danske Bank. "Algo Collateral now becomes the strategic backbone of our collateral operation to facilitate the growth of our margining activities in terms of the breadth of business lines and the number of collateral counterparties covered by our collateral management function."
Algo Collateral provides Danske Bank with an enterprise-wide collateral platform to automate the collateral process and minimize the operational risks associated with the margining process. At a macro-business level, Algo Collateral will facilitate a significant increase in the size and scope of Danske Bank's collateral program without a significant investment in technical or business resources. "In a very short order, we expect to see a significant return on investment," continued Dalhoff.
Danske Bank selected Algo Collateral after having reviewed the marketplace. The breadth of Algo Collateral's functionality, the ease of implementation, the extensive client base, and the existing valued relationship with Algorithmics were all key drivers behind their choice.
"Algo Collateral is established in international markets as the leading collateral management solution," said Michael Zerbs, Chief Operating Officer at Algorithmics. "We are very pleased to expand our relationship with Danske Bank and earn their continued loyalty to our proven solutions. They represent but one of a number of leading edge banks who are moving toward a firm-wide risk management system which will enable them to realize significant strategic and economic benefits."