CloudMargin is assisting clients whose firms have just fallen under the scope of Uncleared Margin Rules (UMR) Phase 5 (or will fall under the scope of Phase 6 as of next September), by connecting with nearly 60 custodians globally for cash, securities and third-party SWIFT settlement.
This is in addition to its long-established SWIFT connectivity to the four major tri party agents.
Through utilising CloudMargin, clients are able to issue instructions automatically, with real-time settlement status consumed back into the platform, allowing firms to maintain tight control of their risk and liquidity as they meet their new margin requirements for non-centrally cleared derivatives.
Other CloudMargin platform enhancements since the UMR Phase 4 deadline include the rollout of a reporting suite that gives firms open access to centralised, structured trade and collateral data, facilitating their ability to meet regulatory reporting requirements and achieve greater credit risk transparency.
In January 2016, CloudMargin became the first collateral management technology provider to offer direct connectivity to SWIFT’s global network of financial institutions.
Simon Millington, CloudMargin head of business development, says: “We successfully onboarded a whole host of clients that fell under the scope of Phase 5 onto UMR-ready features to ensure compliance in time for the 1 September deadline that just passed. A number of these clients wanted to connect to custodians, and we anticipate this will be a growing trend as we move into Phase 6 that impacts so many more firms.
He adds: “By continually adding custodians to our market-leading network, we’ll help our clients meet the challenges of connecting not only to their third-party custodian of choice but also to those of their counterparties for UMR.”
