Commerzbank implements Algo Collateral

Commerzbank implements Algo Collateral

Commerzbank is implementing Algorithmics' Algo Collateral software to manage collateral margining for its repo and OTC derivative business.

Algo Collateral will replace the bank's existing vendor and in-house collateral management system and will initally be rolled out at Commerzbank's Frankfurt and New York offices.

Toronto-based Algorithmics says the product will provide P&L oriented management of all activities, improve the efficiency of the bank's OTC derivative margining operations and incorporate repo margining within the same infrastructure.

Commerzbank will use the system to consolidate collateral agreement information from multiple business lines and manage associated collateral positions. The workflow accommodates exposures and market data from both internal and external sources.

The system also features an automated reconciliation module for dispute resolution and rehypothecation functionality that allows the bank to allocate the most appropriate collateral to satisfy margin calls.

Neil Andrews, global head of inventory management, Commerzbank, says: "We are taking a strategic, consolidated, and centralised approach to expand our collateral operation."

Commerzbank already uses Algorithmics' Algo Market, Algo Liquidity and Algo OpRisk products.

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