With collateral agreement volumes growing at an annual rate of 30%, the burden on collateral management desks is continuously increasing, which in turn gives rise to a need to automate collateral business processes in order to mitigate higher operational risks.

Trade-level reconciliation is now supported, enabling an agreed exposure value to be fixed with the counterparty for each matched trade between MX.3 and an imported counterparty excel file, which rolls up to a pool total for calculating an agreed margin requirement.

This enhances the existing Murex Collateral Manager reconciliation features, which include both scheduled and ad hoc auto-trade matching, proposed matches where trades only partially match, a dynamic filter for manually matching remaining unmatched trades, match storing for subsequent retrieval on future dates and daily reconciliation reports.

"The more frequently you reconcile collateral margining pools, the earlier you are likely to detect any problem, and the earlier you can react and address it. The reality is that margin call reconciliation is happening less frequently as volumes grow, an issue which is best addressed with a systems-based approach rather than extra personnel using error-prone ad hoc techniques", commented Francois Pourprix, Head of Enterprise Risk Management at Murex.

Murex Collateral Manager is a complete enterprise-grade solution for collateral management based on the MX.3 framework. Leveraging the MX.3 Limits, Exchange and Revaluation engines, it comprises an integrated set of end-user screens and tools that enable efficient and controlled operation of the collateral management functions across derivatives, repos and securities lending businesses. The latest Collateral Manager developments will be presented during Sibos Boston.