Transcend, the inventory, funding and liquidity management provider, has expanded its suite of software with an automated collateral management system.
CCP Central is the first platform to connect and automate margin and collateral management activities across the global network of Central Clearing Counterparties (CCPs), according to Transcend.
CCPs have posted record initial margin highs in 2020 and cleared over-the-counter (OTC) derivatives margins are up 23 per cent year-over-year. It is therefore no longer scalable, Transcend says, for firms to manually process CCP margin requirements.
CCP Central helps to address some of the industry’s margin challenges through its out-of-the-box connectivity and ability to harmonise data across CCPs, exchanges, and internal platforms.
The software also provides comprehensive analysis of margin calls and balances, collateral schedules, positions and transactions, and triparty required values.
It also uses straight-through-processing to automatically execute funding decisions and monitor frameworks allowing for tight control of risk exposures.
Transcend CEO Bimal Kadikar says: “CCP margin and collateral management is key to a capital markets workflow, but the lack of transparency and disconnected, manual processes that firms have relied on up until this point has created a high degree of risk that is only growing as CCP margin pressures increase."
