Algorithmics, the leading provider of risk solutions, announced today that the Spanish Confederation of Savings Banks (CECA) has extended its use of Algorithmics' collateral management solution to support its members through a period of consolidation in the Spanish market prompted by the recent financial crisis.
CECA uses Algorithmics' award-winning collateral management product, Algo Collateral, to provide collateral management services to the Spanish Saving Banks through its Global Collateral Service Center.
Over the last six months, consolidation in the financial sector has reduced the number of Spanish Savings Banks from 45 to 34 much larger institutions within 17 financial groups. This has required CECA to adapt its systems and processes in a short period of time to meet the new collateral management requirements of its members.
Massimo Salerno, head of CECA Risk Services Center, said: "For us, it was important to work with a flexible, robust and scalable collateral management solution. This enabled us to be responsive to our members at a very demanding time. Algo Collateral gave us the opportunity to provide both CECA and the Saving Banks with a solution that covers all the aspects of collateral management's operational workflow: exposure assessment, counterparty reconciliation, risk mitigation, settlements and accountancy."
Using Algo Collateral, CECA has adapted the service that it originally provided from the beginning of 2009, to accommodate new requirements for full asset class coverage, including derivatives, security lending and bond repos. CECA's main objective was to provide market-leading collateral management services to support the new Saving Banks as market leaders in their field, to standardize processes and to support their customer business.
Leticia Canal, Algorithmics' Sales Director for the Region, added: "We congratulate CECA on its ability to adapt the collateral management services it provides to its members using Algo Collateral. CECA was able to respond quickly to the changing market environment and to the impact of the consolidation within its membership."
With over 11 years of experience in implementing collateral operation solutions, Algorithmics has almost 80 collateral clients in 17 countries - more clients, more installlations and more agreements in collateral management than the second and third independent solution providers combined.