4sight Launches Collateral Optimization System

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4sight Financial Software, a leading provider of software and consultancy to the Securities Finance and Collateral Management markets, has launched a Collateral Optimization module for its Xpose Collateral Management system. The solution allows financial firms to optimise collateral across Securities Lending, Repo, and OTC/Listed Derivatives business lines in a single solution.

The system will help financial firms to retain vital liquidity, boost revenues and reduce their cost of collateral across business lines and asset classes.

4sight Financial Software, a leading provider of software and consultancy to the Securities Finance and Collateral Management markets, has launched a Collateral Optimization module for its Xpose Collateral Management system.

The solution allows financial firms to run automated availability checks based on a counterparty’s acceptability and concentration schedules. The system will then propose the cheapest to deliver collateral within schedule.

The collateral optimization system can also run collateral allocations across all of a firm’s counterparts and across business lines, including securities lending, repo, and OTC/listed derivatives.

This allows the system to show the discrepancy between the firm’s actual collateral cost and optimum collateral cost. The system bases actual collateral cost on current allocations and optimum collateral cost on the best possible allocations.

The module also enables users to run ‘what if’ scenarios to allocate collateral against underlying clients in the collateral pool without booking any collateral movements. This allows users to collateralize their underlying clients in the optimum manner, within their customers’ acceptability and concentration guidelines. It also identifies any surplus collateral for reinvestment and frees up valuable liquidity.

“Collateral optimization is becoming of critical importance in making effective use of balance sheet due to forthcoming regulations such as Basel III and Dodd Frank, and the new module helps users to manage collateral supply and demand in a much more efficient manner”, comments Judith McKelvey, 4sight Sales Director. “We have seen a great deal of interest in collateral optimization from both clients and prospects, as the system will help them to retain vital liquidity, boost revenues and reduce their cost of collateral across business lines and asset classes.”

About 4sight Financial Software

4sight Financial Software is an independent software solutions provider to financial institutions, with sixteen years of experience and offices and clients worldwide.

4sight’s customer base includes a full spectrum of market participants from custodial lenders & agents, and principal intermediaries, to direct lenders and global broker dealers. Clients in sixteen countries on four continents use 4sight’s software to meet their business needs and 4sight offers the reliability and experience of a company with a proven track record.

4sight’s product range includes solutions for Securities Lending & Repo, Collateral Management, Settlement and Market Connectivity. 4sight’s software helps financial institutions to improve efficiency, reduce costs, automate manual processes and control risk.

4sight also provides project management, consultancy services and customer support through its global network of offices.

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Judith McKelvey
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