South African market participants can now enjoy unprecedented automation and straight-through processing by leveraging newly available, integrated cloud-based technology to exchange tri-party SWIFT1 messaging for collateral instructions, settlement and confirmations.
CloudMargin, the multi-award winning creator of the world’s first web-based collateral and margin management solution, and Strate, the South African Central Securities Depository (CSD) and South Africa’s first Tri-Party Collateral Management Agent, today announced that they have just integrated their platforms. The move makes tri-party messaging and collateral optimisation more accessible for both buy- and sell-side participants in the country.
The agreement enables clients to efficiently and seamlessly use their collateral held at Strate to cover their margin calls in the over-the-counter (OTC) derivatives market. For local market participants without their own SWIFT membership, this previously would have been a time-consuming, manual process to handle messaging related to collateral instructions, confirmations and settlement. Now, they can take advantage of the CloudMargin and Strate Collateral Management Services straight-through processing capability via SWIFT.
Due to the fact that the solution is cloud based, collateral management clients can implement it quickly at a reasonable cost, the firms said.
Lee McCormack (pictured) CloudMargin Head of Strategy, says: “We are delighted to roll out this breakthrough service in conjunction with Strate Collateral Management Services to market participants in South Africa, helping them increase their efficiencies via our cloud-based platform. We are continuing to build an inter-connected network of organisations globally that give clients one-stop access to a broad range of collateral management and other related services for cleared and uncleared derivatives transactions.”
Steve Everett, General Manager of Strate Collateral Management Services, says: “We are delighted to partner with CloudMargin to provide a fully integrated, cost-effective and powerful collateral management capability to the South African market. This comes at a time when firms here are preparing to meet the requirements of the non-cleared OTC derivatives margin regulation due to take effect on 1 September, which will require enhanced collateral management capability from both the buy-side and the sell-side.”
