New York, NY (PRWEB) March 26, 2012
SunGard has added a cross-enterprise collateral management and optimization solution to its collateral management suite. Apex Collateral helps banks, broker dealers and asset managers improve risk management, make the best use of their collateral assets, and support the shift towards central clearing of over-the-counter (OTC) derivatives.
Regulations such as Dodd-Frank, EMIR and Basel III are increasing the ratio of capital required to do business, while the migration to a centrally cleared model for OTC derivatives is escalating the demand for high quality collateral such as cash or government bonds. However, many financial institutions analyze data and make decisions about capital and collateral on a case-by-case basis within product and geographic silos.
Apex Collateral centralizes all elements of the collateral management process, from creating and maintaining a single, real-time inventory of collateral assets to trading collateral and managing operational requirements. Customers can view and manage collateral across assets, business lines and geographies, helping them increase efficiency and manage risk more effectively.
Numerical algorithms automatically calculate the optimal assignment of assets to collateral requirements, helping customers minimize the overall cost and maximize the use of valuable collateral. Flexible workflow tools help standardize how collateral is managed across a broad range of products, including all flavors of securities lending and repo as well as bi-laterally and centrally cleared OTC derivatives.
Rich Hochreutiner, global head of collateral trading and management at Swiss Re, said, “SunGard’s Apex Collateral solution helps us increase our effectiveness by providing a consolidated, big picture view of our collateral asset pool across OTC derivatives, reinsurance collateral, repo and securities lending. This transparency helps us mitigate counterparty risk while getting maximum value from our collateral assets.”
Andy Nybo, principal and head of derivatives research, TABB Group, said, “Adopting sophisticated tools to efficiently manage the collateral process on an enterprise-wide basis is an absolutely key requirement in today’s highly competitive environment. Being able to manage collateral in a more efficient and timely manner and within the trading process can help provide a significant competitive advantage.”
Craig Costigan, executive vice president and general manager in SunGard’s capital markets business, said, “With reduced liquidity and higher demands on capital, financial services firms are looking to maximize the use of all of their financial assets. SunGard’s Apex Collateral solution provides a centralized, up-to-date view of collateral across the enterprise and automatically calculates the most optimal assignment of collateral, helping firms minimize not only costs but the demand on their capital.”
About SunGard’s Apex Collateral
SunGard’s Apex Collateral solution helps collateral traders, heads of trading desks, risk professionals, operations staff and senior management manage and optimize their collateral on an enterprise-wide basis. Apex Collateral offers a single platform for trading directly from a real-time, consolidated global inventory as well as supporting operational requirements for underlying securities lending, repo and derivative transactions. It uses numerical algorithms to automatically allocate collateral in the optimal way, helping firms minimize costs and maximize return on assets. For more information, please visit http://www.sungard.com/enterprisecollateral.
SunGard is one of the world’s leading software and technology services companies. SunGard has more than 17,000 employees and serves approximately 25,000 customers in more than 70 countries. SunGard provides software and processing solutions for financial services, education and the public sector. SunGard also provides disaster recovery services, managed IT services, information availability consulting services and business continuity management software. With annual revenue of about $4.5 billion, SunGard is the largest privately held software and services company and was ranked 434 on the Fortune 500 in 2011. Look for us wherever the mission is critical. For more information, please visit http://www.sungard.com.
Trademark Information: SunGard, the SunGard logo and Apex are trademarks or registered trademarks of SunGard Data Systems Inc. or its subsidiaries in the U.S. and other countries. All other trade names are trademarks or registered trademarks of their respective holders.