RBC Dominion Securities, has chosen the Sentry product from Algorithmics for collateral management. The contract also specifies the provision of professional services for implementation and ongoing customer support.
Mike Swan, the RBCDS project manager who handled the implementation for the Canadian investment bank says Sentry was selected after a detailed examination of alternatives, including self-build.
"We needed a collateral management solution that was ready to install, to replace spreadsheet-based monitoring, to control the associated operational and reputational risks, and give us new features, with room to grow," he says, adding that Sentry was the only system that was functionally complete and ready-to-go.
The implementation will automate collateral management processes for derivatives trading at the institution's Toronto head office, and its New York operations. The Toronto phase of the implementation, which encompasses mid-office and documentation systems, was completed in ten weeks. When both installations are complete, back office processes in Toronto and New York will be integrated with Sentry.
The installation resides on a single Microsoft NT server in Toronto with 10 to 15 workstations in Toronto and New York, and accesses a Sybase 11.5 database.
The implementation of a common platform is expected to provide improved support for management reporting, collateral rehypothecation, and exposure reconciliation for larger-volume clients, says the bank.