Collateral management in the US

11 April 2008

Tim Hudson of Allustra gives a round up of the increasingly sophisticated requirements for collateral and margin management solutions he’s been observing over the past few months in the US.

“Allustra continues to see an increasing interest in our collateral and margin management software, Kyros especially from the buy-side and those that service the buy-side not least because of the continuing rise in the use of OTC derivatives.

“With many users having responsibilities other than collateral management and with the increasing burden of new strategies as well as growing volumes of collateralised trading, buy-side firms are looking to automate as much of the collateral management process as possible. Tasks that would typically be user intensive without the proper systems in place are made simpler with the right solution.

“We have found that Kyros fits extremely well within the demands of the buy-side - firms who manage multiple strategies, use a broad range of asset classes and margining methods and who naturally favor securities over cash as collateral. In addition, inventory management in Kyros helps by offering features that allow users to easily identify position and track positions pledged or segregated as collateral. Most recently, Kyros’ event-driven workflow and new dashboard are attracting high levels of interest from firms wishing to benefit from an exceptions-based approach, relieve resourcing pressures and reduce human error.

Marco Knaap, Allustra’s Sales Director, comments, “The new operational needs that collateral management creates have, in some cases, rather overwhelmed the buy-side community. However, I’m pleased to say the powerful features Allustra provides in Kyros can now help collateral managers securely and confidently support their growing collateralised business.”

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