Home collateral Collateral management solution of the year: Adenza

Collateral management solution of the year: Adenza

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Adenza – formerly Calypso Technology – is a leading provider of cloud, cross-asset, front-to-back solutions for financial markets. Benefiting from 40,000 users in more than 60 countries around the world, the company has actively developed its base in Asia-Pacific and now has more than 40 customers in the region. It continues to seek to enter new strategic and fast growing markets, such as the Philippines, Indonesia and India.

Adenza’s platform for collateral and margin management was designed to provide clients with a real-time, single, integrated and open platform to support a multitude of strategic users, including the front-end office, middle office, risk, treasury, compliance, collateral management, securities financing, clearing and margin to post-trade processing, for both spot and derivative products .

The Adenza warranty management solution assists both buyers and sellers, with its multi-asset reach and integration for the middle and back office. The solution supports all types of collateral arrangements, allowing clients to manage their collateral within a single solution, including over-the-counter and exchange-traded derivatives, securities financing, asset-backed securities and mortgage-backed securities, as well as the creation and redemption of exchange-traded funds.

Adenza says customers are choosing its platform as a way to solve classic and emerging challenges in the industry.

“The first challenge is really to understand the regulatory context, which leads to sophistication in the field of margin and collateral management, and also to keep abreast of regulatory changes”, Gil Guillaumey, Head of Strategy, Solutions for capital markets at the company.

[During the Covid-19 crisis], all collateral management systems were put under pressure to access inventories: our clients had access to real-time inventory and back trade

Gil Guillaumey, Adenza

He explains that when you buy software like the Adenza platform, you also get full service, which manages and maintains that software, helping to keep it up to date to meet the latest regulatory changes.

From a more general margin and calculation perspective, the Adenza platform helps clients calculate margin, connect with custodians and handle any issues that may arise when integrating with third parties. or tripartite agents. Guillaumey goes on to explain how “all around the life cycle of the margin call is fully managed by Adenza on behalf of their clients: the solution is fully managed so that they literally turn the key and benefit from all the functionalities” .

The platform is cloud-ready and Adenza strives to provide different delivery modalities to meet the diverse needs of its customers. Customers can use the on-premise solution, where they implement Adenza using their own architecture, or they can use the cloud solution and outsource platform management entirely to Adenza, or opt for a hybrid mode.

The end-to-end aspect and the integrated character of the Adenza solution allow it to stand out in the market. Guillaumey explains how the company has a true end-to-end solution: “It’s not just about calculating and trading margin, it’s really upstream – allowing traders to access the margin. ‘inventory, to simulate the impact of the activity before actually negotiating, hedging, pledging, then offering a single inventory to cover all margin calls, up to cash and back-office reconciliation, and all the institution’s security news in one place and via a single platform.

He underlines Adenza’s resilience during the Covid-19 crisis, when collateral management systems were under great pressure and clients faced massive market volatility: “All collateral management systems were pressured to access inventory: our clients had access to real -time inventory and back trade.

Throughout this period, the company continued to address the key regulatory challenges facing the industry, and the clearinghouse clients in particular were able to use the platform to manage everything around the initial margin, by ensuring that intraday market data was properly collected and backtested.

In July, Calypso Technology merged with AxiomSL, another technology provider, with the merged unit being renamed Adenza. Guillaumey says integrating the business into the business will be a key area over the next 12 months.

“We see many potential benefits for our customers by leveraging the native integration between the two solutions,” he says. “Based on Adenza data, customers can manage Basel transparently III, Basel IV number of capital or special drawing rights, stable net funding ratio, which are two areas where collateral and the data surrounding it are critical.

From a technical standpoint, application programming interfaces will remain a key focus for the next 12 months, as will Adenza working to integrate into richer ecosystems. The company is modernizing the user interface because it recognizes that, as frameworks constantly evolve and the market becomes more digital, this is what its customers will demand.


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