TwoFour, announced today that margin processing and collateral tracking has been added to its global, 24 x 7, FX, treasury and cash management processing solution.
The TwoFour system monitors real-time exposure against margin including haircuts and risk factors. Multiple types of collateral, including TwoFour cash accounts and external asset accounts such as cash, securities, stocks, bonds, CDs, and other liquid assets are supported. Transactions that cause margin deficits and/or credit limit exceptions generate notifications to traders and risk management.
TwoFour's customizable margin capability allows margin profiles to be configured based on financial product, tenor, currency or currency pair, and by customer or a group of customers. Margin can be checked for FX spot, forward, and swaps, as well as for vanilla and exotic OTC FX options. Pre-trade modeling can be initiated from TwoFour entry screens or by interfacing external activity into TwoFour. Exposures are calculated and checked at deal entry, in blotters, and in reports, and can be viewed in an intuitive search screen. As new trades are added, positions are updated and can be viewed instantaneously by users around the world. Users can conduct real-time exposure checks against the current value of the collateral allowing organizations to more effectively service their clients and closely monitor counterparties trading on margin.
With exciting innovations and enhancements planned in the near future, TwoFour provides a constantly evolving market solution to a global client base. John Feeney, Director of Product Development at TwoFour said, "Our clients are telling us that risk management, including margin and collateral management is an increasingly critical component of managing their business in today's challenging financial environment. Adding margin to TwoFour's existing limit monitoring improves our client's ability to service their customers more effectively and provides organizations with the risk management tools needed in today's fast moving, high volume markets."