Summit to launch real-time collateral management module

Source: Summit Systems

Summit Systems, the treasury and capital markets subsidiary of Misys plc, has announced that it will be launching a real-time collateral management module at the ISDA AGM in Barcelona.

The conference takes place at The Hotel Arts, Barcelona 15-18 March 2005, and Summit is exhibiting its Summit FT solution that includes the new real-time collateral module. It has been designed to fully manage the complete collateral management process in real-time, automating the whole process from counterparty demands, pledges, identification and valuation through to assigning and managing the collateral.

Although collateral handling processes have been present within Summit for several years, it managed the process in batch mode and there was an intention to expand its coverage and offer real-time functionality to fully meet its client's needs for cross-asset agreements. This module sees the realisation of this plan.

Steve O'Brien, Product Director of Summit comments on the driving forces behind the launch of the new module: "We have seen an increase in demand for this type of solution as banks grow their derivatives books and need to remove trades and manage collateral to reduce credit risk - particularly in the area of cross-asset agreements where banks look to net their exposure across business lines. Managing credit risk is now much easier with Summit - previously banks would have had no choice but to use a separate collateral system. With the introduction of Summit's Collateral Management module our customers are able to have one fully integrated system across asset classes for managing their market, credit and collateral risk."

The Summit Collateral Management Module speeds up the whole collateral process. As a member of ISDA, Summit has worked closely with the organisation to integrate the latest standards including forms that allow the quick entry of information such as valuation, margining, haircut etc. The Summit FT .NET architecture provides a real-time blotter with a summary view of all supporting documents with the current calculation values for exposure, net collateral requirement as well as other calculated values. Via a detailed drill-down view the user sees all associated transactions and corresponding collateral. Fully integrated within Summit's workflow, the module manages all movements including payments and the creation and despatch of SWIFT messages, and various other formats in real-time, according to rules specified within the system.

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