Lombard Risk Management has released a new version (V12.3) of COLLINE for collateral management and clearing, providing enhanced and new functionality for collateral management, clearing and regulatory demands.
Designed by experienced business practitioners for end-to-end, cross-product (OTC derivatives, repo and sec lending) collateral management and clearing, COLLINE provides a consolidated solution for mitigating exposure risk while satisfying the growing demand for multiple/global entities, cross-product margining, clearing, optimisation, master netting, MIS reporting, dispute management and electronic messaging.
After the 2008 crisis the G20 directed a move for the standardised over-the-counter (OTC) derivatives from a bilaterally-cleared to a centrally-cleared model. As a result, financial institutions now need to be able to support existing bilateral agreements and those cleared on an exchange either directly, or via a clearing broker.
COLLINE's Clearing Module V12.3 has been developed to support both house and client-clearing for direct and indirect clearers, and offers flexible functionality with rule builders to enable clients to manage their on-going requirements.
COLLINE V12.3 clearing functionality offers greater flexibility and includes:
• Configurable cash flows: component-based breakdown, physical payment auto-booking. Multi-currency cash flows at trade and agreement level;
• New clearing dashboard supporting flexible views and drill-downs;
• New eligibility and haircut templates;
• Net settlement views based on asset criteria; and
• Event type asset booking allocation.
John Wisbey, chief executive officer, Lombard Risk, says: "Our COLLINE clients benefit from regular functionality enhancements that meet market demands as they arise. Our dedicated product team applies 'at the market' expertise in the ongoing development of the product, always designed to enable our clients to operate at maximum efficiency.
“Our V12.3 release is another example of how we have extended and adapted earlier versions of COLLINE functionality to support the growing and evolving needs of our clients, across bilateral, cleared and cross-product businesses. This release maximises the functional configurability available to enable users to view, manage and report on, their global collateral requirements across products and CCPs, on a single platform, according to their individual business models and needs.
“In line with our product strategy to extend and build functionality in response to both regulatory/market demands and our clients' priorities, our next release in December 2013 provides configurable and consolidated inventory management functionality, and our powerful collateral optimisation engine.
“We are very excited to continue to deliver innovative and market-leading functionality that enables our clients to meet their evolving business requirements."
Helen Nicol, product director, COLLINE, Lombard Risk, says: "The latest version of COLLINE will allow further cross-financial product margin capabilities. COLLINE collateral management and clearing has been designed to meet the Dodd-Frank and EMIR market regulations for mandatory central counterparty clearing."