Steve OâBrien, Product Director of Summit comments on the driving forces behind the launch of the new module: "We have seen an increase in demand for this type of solution as banks grow their derivatives books and need to remove trades and manage collateral to reduce credit risk - particularly in the area of cross-asset agreements where Banks look to nett their exposure across business lines. Managing credit risk is now much easier with Summit - previously banks would have had no choice but to use a separate collateral system. With the introduction of Summitâs Collateral Management module our customers are able to have one fully integrated system across asset classes for managing their market, credit and collateral risk."
The Summit Collateral Management Module speeds up the whole collateral process. As a member of ISDA, Summit has worked closely with the organisation to integrate the latest standards including forms that allow the quick entry of information such as valuation, margining, haircut etc. The Summit FT .NET architecture provides a real-time blotter with a summary view of all supporting documents with the current calculation values for exposure, net collateral requirement as well as other calculated values. Via a detailed drill-down view the user sees all associated transactions and corresponding collateral. Fully integrated within Summitâs workflow, the module manages all movements including payments and the creation and despatch of SWIFT messages, and various other formats in real-time, according to rules specified within the system.