The new TLM Cash and Liquidity Management 2.5solution with an integrated Intraday Liquidity Management Module is a strategic tool to enable banks to comply with Basel regulatory compliance for Monitoring Tools for Intraday Liquidity Management, with the first reporting deadline coming in January 2015. The new solution will enable banks to report on all liquidity and exposures.

Banks have to react to increasing regulatory and operational pressures to actively monitor and manage their intraday liquidity positions and risks for both direct participant and correspondent banking settlement markets, this ensures they can meet payment and settlement obligations on a timely basis. This is a paradigm shift from end of day focused cash management operations and is required to ensure banks contribute to the smooth functioning of payment and settlement systems, under both normal andstressed conditions, as well as managing their own intraday liquidity risk profiles.

The new TLM Cash and Liquidity Management 2.5 solution helps banks to forecast and reconcile cash and provide a consolidated single view across all currencies and accounts in real-time, whilst tracking, monitoring and reporting on an intraday basis. The release provides improved forecasting accuracy and intraday liquidity visibility through automated data feeds, flexible balancing and forecast modelling.

Nick Noble, Product Manager Cash Management, SmartStream, states: “Correspondent banks are often not able to provide full coverage of movements across financial institutions Nostro accounts. This lack of coverage clouds visibility, causing forecasting errors, which can lead to huge amounts of money being lost due to incorrect funding decisions, and also makes monitoring the Basel Intraday Reporting metrics in real time almost impossible. At SmartStream we believe there should be a duty of care for managing intraday liquidity, this is not just a tick box item, this is going to be a key requirement for 2015”.

Through the implementation of SmartStream’s lifecycle management capabilities within 2.5 supplementary messaging feeds can be used to offer full transaction coverage providing the visibility of intraday liquidity. Additionally, the Intraday Liquidity Management module will track, monitor and report intraday liquidity positions throughout the day in order to meet regulatory compliance and enable necessary stress testing and analytical profiling.