Omgeo Enhances Collateral Optimization Capabilities

Provisions in both the US Dodd-Frank Act, and the European Market Infrastructure Regulation (EMIR) have introduced central clearing and new eligibility criteria for collateral. ProtoColl allows for asset managers to monitor their margin and collateral requirements across the entire trading landscape, and an automated collateral-selection function which grades the available assets and suggests which to use for specific trades.

Other added functionality includes recognition for the Legal Entity Identifier (LEI) and its precursor, the US Commodity Futures Trading Commission Interim Compliant Identifier (CICI).

"Increasing collateral and margin requirements, coupled with a shorter list of eligible collateral instruments, will likely result in a collateral shortage. As a result, many buy-side firms face an overriding need to be able to optimize their use of existing collateral, before even considering the transformation process," says Ted Leveroni, executive director of derivatives strategy and external relations at Omgeo. "ProtoColl provides a holistic view of collateral that is both needed and available, allowing firms to optimize what they have and ensure they are making the best possible use of their resources."