Citi has enhanced OpenCollateralSM, its industry-leading collateral management solution, to provide asset managers with automated collateral position reconciliation via SWIFT.
This new capability streamlines collateral management by creating standardization across funds and custodians, requiring fewer collateral accounts and reducing the number of collateral instructions.
Derivatives regulations are driving investors to improve both the capacity and the efficiency of their collateral management operations. "Now, with OpenCollateral, our clients can rely on us to manage collateral directly from their existing custody accounts," said Rajen Shah, Global Head of Collateral Management, Citi Transaction Services. "Receiving this data directly from the custodian avoids the need for asset managers to be involved in instructing every collateral movement."
A key step in achieving collateral efficiency is to make best use of fund assets as collateral. This is only possible if the collateral manager has full information from the custodian on held balances each day. "Our early-to-market solution provides better efficiency for investors by enabling them to concentrate all their unencumbered assets within their principal custody accounts," continued Rajen Shah. "This new capability makes it even simpler for our clients to use our collateral management service across all their existing custody relationships."