HazelTree Treasury Solutions – Improving Fund Performance through better Treasury Management

3 November 2014

The Power of an Integrated Treasury System

HazelTree's comprehensive Treasury Management solution provides a single vantage point to discern, analyze and optimize rates and balances across all counterparties. From cash management to securities financing, from PB margin to OTC collateral management, critical information is clearly presented, choices modeled and transactions executed — seamlessly through a single interface.

Bringing together real-time data from multiple trading systems and market-data sources into a single platform, HazelTree's Treasury Management solution provides transparency across all counterparties in real-time. Seeing clearly across the investing domain through this powerful lens, hidden alpha can be identified and captured while nascent risks can be proactively mitigated.

Advanced Technology

HazelTree delivers a seamless, straight-through process for capturing, managing and transacting on critical cash, security and collateral positions.

The HazelTree Data Warehouse brings together the power of clarity, leveraging a proprietary, state-of-the-art data warehouse ensuring that critical information is delivered and managed to the highest quality standards in a fully secure environment.

You define your data requirements. HazelTree handles the heavy lifting. We manage a range of feeds from third-party market data services and prime brokers that we configure on your behalf to address your specific thresholds and quality metrics. Our system provides automatic data quality checks and alerts in processing real-time data. All data is stored in a fully secure, historical database for rapid reporting and analysis as well as maintaining an audit trail.

Cash Management: Capture The Best Rates

HazelTree provides transparency across your domain and displays cash balances (both debits and credits) held at all prime brokers, custodian banks, and other counterparties in one concise dashboard. HazelTree delivers flexible analytics and rules-based “recommended actions” enabling rapid realignment or negotiation to capture the best rates and optimize cash positions on a daily basis.

With HazelTree, you see actual rates across counterparties to earn the best rate of interest on any excess cash or move funds to pay a debit at another. Not only do you analyze and optimize your balances, you can manage wire transfers to all counterparties through a single user interface. And, you can compute your balances and rates, determine your best course of action, and automatically execute cash transfers, foreign exchange trades, and pay expenses.

Securities Financing: Find The Best Terms

Competition for capital has never been more intense, but with HazelTree, optimizing returns is possible through efficient securities financing techniques and best practices. HazelTree seamlessly manages stock borrowing/lending and margin rates, enabling fund managers to:

  • Locate securities available for borrow from/lend to counterparties
  • Based on the rates comparisons, select the best projected revenue options
  • Increase performance by effectively managing these options
  • Understand true P&L by easily allocating borrow costs to individual positions
  • Manage short positions across prime brokers (general collateral and ‘hard to borrows’)
  • Manage pre-borrow inventory

PB Margin Analytics & Replication: Trade Seamlessly Across Counterparties

HazelTree allows you to monitor and manage margin exposures aggregated at the prime broker level, detailed at the security level, and custom filtered at the fund, region, and sector levels. HazelTree gives you the comprehensive tools and analytics to verify, meet, and manage your margin obligations across multiple counterparties and brokers.

HazelTree's sophisticated multi-dimensional prime broker margin analytics enable you to support your trading activities seamlessly, with:

  • Aggregated views of margin requirements by fund
  • Proprietary tools to independently calculate and verify prime broker margin calculations
  • Asset-based ‘house’ margining
  • Sophisticated analytics to identify differences across brokers
  • Global netting and cross margining
  • Regulatory margin requirements (including Reg T and listed derivatives)

Collateral Management: Maintain Liquidity & Manage Your Risks

HazelTree's state-of-the-art Collateral Management Service gives you clarity and the analytical firepower necessary to correctly identify, analyze and value collateral. Our system interacts with your in-house or third-party accounting system or administrator to provide visibility across your range of positions.

HazelTree’s Collateral Management Service handles any product covered within an ISDA CSA and ICMA GMRA, including bilateral:

  • FX Options
  • Interest Rate Swaps
  • CDS
  • Equity Swaps
  • Swaptions
  • Repos

Reconciliation: Reduce Operational Risks 

Operational risk is a real threat to overall performance. Without a robust, automated reconciliation process, your gains can be unexpectedly erased and significant losses incurred in the blink of an eye.

HazelTree automates true transaction-, position- and cash-level reconciliations across counterparties. By linking cash balances with transaction details from disparate sources, the system eliminates time-consuming and error-prone manual efforts, leading directly to operational excellence.

  • Maximize efficiency and reduce errors & omissions
  • Identify the highest priority breaks based on dollar amount, shares, or any other criteria
  • Retain details and notes for historical audits
  • Streamline approval and processing decisions via built-in workflow rules
  • Reconcile all security instrument types including OTC Derivatives
  • Satisfy EMIR & Dodd-Frank requirements

Summary

HazelTree Treasury Solutions provide the investment management industry with technology that enables fund managers to take control of their data, perform extensive analysis, determine optimization opportunities, and then execute these decisions in an automated and straight through manner. 

HazelTree clients benefit from our solutions in the following ways:

  1. Increased efficiency and productivity within treasury & operations.  HazelTree technology is a scalable solution that adapts to increases in complexity by providing automation that frees existing resources and supports growth without the commensurate need for headcount.
  2. Reduced risk and better controls within treasury & operations.  By implementing HazelTree Treasury Solutions, our clients benefit from straight through processing and connectivity upstream and downstream that streamlines operations and reduces operational risk.
  3. Improved performance through optimization of rates & balances.  HazelTree Treasury Solutions enable managers to optimize across counterparties, ensuring the best allocation and treatment of their portfolios.  From Cash Management, to Securities Financing, to Margin and Collateral Management, HazelTree provides the necessary tools to extract more return for the fund and investors, thereby capturing additional alpha.

HazelTree Treasury Solutions is committed to leading the market with innovative technology and products that deliver value to our clients and their investors.  We are committed to “Improving Fund Performance through better Treasury Management”.

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