SS&C Technologies has rolled out a new service that aims to help investment managers simplify preparations for margining of non-cleared OTC derivatives.
The service, Over-the-Counter Collateral Optimized (OTCCO), is the latest release of a straight-through-margining service model offered by the company for collateral management.
As firms prep for new requirements created by the International Organization of Securities Commissions (IOSCO) and the Basel Committee on Banking Supervision (BCBS), this new offering will help firms tackle needs related to 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, European chief operating officer of SS&C GlobeOp, in a statement.
To improve calculation accuracy, OTCCO integrates middle office processes ─ such as independent valuation and real-time collateralized portfolio reconciliation ─ with collateral management systems. The service also obtains real-time confirmation of margin movements. Additionally, the service is connected to SS&C's wire-processing technology, which includes 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," according to the Windsor, Connecticut-based software provider.
Bill Murphy, CTO of Blackstone, once again joins the podcast to discuss the private equity firm's new offices, designed to house its innovations team.Subscribe to Weekly Wrap emails