SS&C Technologies Holdings, Inc. (Nasdaq: SSNC), a global provider of financial services software and software-enabled services, today announced the latest release of a straight-through-margining service model for collateral management.
The service, Over the Counter Collateral Optimized (“OTCCO”), will help investment managers simplify preparations for margining of non-cleared OTC derivatives.
The global requirements created by the International Organization of Securities Commissions (“IOSCO”) and the Basel Committee on Banking Supervision (“BCBS”) will have significant impact on investment operations. The new obligations demand improved capital adequacy, the implementation of stiff margin requirements, and improvements in the use and optimization of collateral.
“The road to regulatory compliance for the margining of non-cleared OTC derivatives will be disruptive to the investment management industry. Within the disruption lies opportunity, and that is why we are encouraging our customers to engage our collateral management service, OTCCO,” said Tom Kirkpatrick, Managing Director and European COO, SS&C GlobeOp. “The ability to leverage SS&C’s world-class operating model to support straight-through-margining with appropriate controls will allow managers to quickly adapt to seize new business opportunities.”
SS&C’s straight-through-margining OTCCO service integrates middle office processes such as independent valuation and real-time collateralized portfolio reconciliation, with collateral management systems to provide accuracy in the calculation of collateral requirements. Collateral margin communications with counterparties are managed via a margin confirmation community, to obtain real-time confirmation of margin movements. SS&C has also connected its wire processing technology to include settlement instructions to the Custodian or Prime Broker. OTCCO enables customers to leverage an automated, straight-through-processing model from reconciliation, collateral calculation and collateral call confirmation to wire processing.