4sight adds Automated Collateral Substitution to Its Collateral Optimization Solution

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4sight Financial Software has added new features to its Collateral Optimization system. This allows users to automate collateral recalls and substitutions and the system can base all collateral substitutions on cheapest to deliver methodology.

"We developed new automation around this process to reduce the level of manual effort involved, while also minimising collateral costs through dynamic asset allocation.”

The enhancements to the 4sight Collateral Optimization system now allow users to automate collateral recalls and substitutions based on:

  •     Corporate actions
  •     Changes in collateral credit rating leading to it becoming ineligible
  •     Changes in counterparty and CCP eligibility criteria
  •     Recall requests by underlying clients leading to a short position

In addition, 4sight's collateral management software can optimize all collateral substitutions using automated cheapest to deliver collateral algorithms.

This allows users to identify and process multiple returns and recalls for multiple counterparties (bilateral, CCP or triparty) from a single screen. It helps to automate a process that typically involves significant manual effort for collateral managers.

The system can also help users to see when pledged collateral is no longer cheapest to deliver and can propose suitable reallocations.

Martin Seagroatt, 4sight’s Head of Marketing comments: “collateral substitution is one of the biggest operational headaches of the collateral management process. We developed new automation around this process to reduce the level of manual effort involved, while also minimising collateral costs through dynamic asset allocation.”

About 4sight Financial Software

4sight Financial Software is an independent software solutions provider to financial institutions, with seventeen 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 trading, cross asset class collateral management & collateral optimisation, 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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Martin Seagroatt
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