SmartStream has acquired Algorithmics Collateral assets from IBM, enabling it to address funding and counterparty risk issues for customers from within its own post-trade software suite.
The Algorithmics Collateral package, now rebranded TLM Collateral Management, has an established position in the financial services industry, offering collateral lifecycle automation for buy- and sell-side institutions, custodians and asset servicers.
SmartStream believes that clients will achieve significant additional value, beyond a standalone operation, through the integration of collateral management with its own post-trade suite of service for cash and intraday liquidity management, corporate actions, reconciliations, data management and exception management.
Philippe Chambadal, CEO of SmartStream, says the integration will give customers a clearer picture of their true exposure and the ability to to mitigate counterparty risk and to respond to market changes in real-time.
"The solution gives a complete picture across the front-and back-office and a centralised view of a firm’s inventory and exposure, enabling greater transparency of funding and collateral needs - which ultimately underpins trading,” he says.