Credit Lyonnais Securities is using SunGard Securities Processing's Margin Advisor product to monitor intra day credit exposures and perform real-time margin calculations at its institutional equities operations in the US.
Margin Advisor provides real-time status of margin accounts by continuously monitoring price movements and account activity to detect shortfalls.
Credit Lyonnais Securities USA is using the tool as a regulatory risk management system to monitor in real-time changes in positions and valuations and automate resolution of margin calls.
Prior to the implementation, the firm kept track of client positions in margin accounts by using spreadsheets and manually applying end of day pricing to the positions.
Todd Wiltshire, director at Credit Lyonnais Securities USA, says the tool enables the firm to accurately gauge its market risk, update positions in real-time and replicate information instantly from SunGard's trade processing system Phase3.
"Margin Advisor's flexibility in setting up our own unique set of rules gives us infinite possibilities in what we can define in the system, such as how we set up accounts, reflect securities, perform margin calculations for certain accounts and securities, and group accounts for a single entity," says Wiltshire.