Algorithmics wins Bayerische Landesbank collateral contract

Algorithmics wins Bayerische Landesbank collateral contract

Bayerische Landesbank (BayernLB) of Germany has selected Algo Collateral from Toronto's Algorithmics to manage all of its cross product margining requirements.

Jurgen Pohl, head of collateral department, BayernLB, says the application will be used to automate and improve the operation aspects of the bank's existing repo marginging business and to support anticipated future growth in OTC dervivative margining.

He says the firm selected the product after a visit to the vendor's Algo Collateral user conference in February followed by an extensive 3-month evaluation of available systems in the marketplace.

Claudia Gutke, collateral manager, BayernLB, says the bank was swayed by the solution's global client base and short implementation cycle: "The willingness of their clients to provide references, significantly added to our confidence."

She adds: "Our overall plan is to integrate, step by step, other product lines into Algo Collateral and to achieve global cross-product margining."

Production will commence in December with repo margining, says Gutke. OTC derivative margining will be incorporated in March 2003.

The bank intends to use the solution to update limit systems with intra-day collateral balances, and update its regulatory data warehouse with capital requirements and collateral trade costs.

Additionally, BayernLB purchased Algo Collateral's reconciliation and "Four eyes" data entry modules for resolving valuation discrepancies and securing data changes.

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