The cross-asset inventory management module provides full support for the consolidation of settled stock positions, open outright trades, borrowing and lending activities and off balance sheet activity from multiple contributing systems and across multiple entities in a multi-time zone environment. It is already interfaced with ADP's international processing platform.
The cross-product collateral and margin management module provides full support for collateralisation and credit risk mitigation across different business lines simultaneously. It takes the inventory management module as its foundation and combines this information with the terms and descriptions of margining agreements and credit support terms, together with current market data to generate collateral portfolios and calculate latest margin calls and returns. Advanced workflow then allows collateral managers to deal with specific requirements for each counterparty, such as issuing and receiving margin calls, resolving disputes, performing reconciliations, adjusting valuation and pricing data, and handling the transfer of eligible collateral.
The securities lending module provides comprehensive processing of stock borrow and loan transactions from trade capture, through margining and fee calculation, to the generation of the relevant accounting entries. It is interfaced with ADP's international back office platform enabling full settlement of stock borrow loan movements if required.
âCross-product collateral and margin management is rapidly becoming a core function and, on a global basis, banks, finance firms and corporates, both small and large, are looking for suitable robust, integrated solutions. The impetus for this comes not only from the need to address new external regulatory standards of risk management but also from internal business mandates to maintain existing market share as well as new business development,â said Robin Kneale, product manager, ADP Wilco.
All modules can work together or independently and are seamlessly delivered across an intranet. They can be delivered on-site or hosted in ADP's industry leading data centre.
These new modules are powered by the Allustra Kyros product suite.
Mark James, Managing Director of Allustra said: âGiven the growing importance of collateral and margin management as well as securities lending, Allustra is delighted that ADP, with its unrivalled global presence and reputation, has chosen the Kyros product suite to power its new offerings in these key areas.â