TLM Collateral Management

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Reduces collateral management credit and operational risks via an end-to-end automated solution for market participants of all sizes

TLM® Collateral Management is a comprehensive, automated data management solution that helps financial institutions lower the operational risks associated with collateral management programmes. It offers a variety of functions, with coverage for cleared and non-cleared, overthe-counter (OTC) derivatives margining, repo margining and securities lending margining.

TLM Collateral Management assists with the reduction of credit and operational risk using a best practice approach to comprehensive collateral management. The solution is ideal for all types of financial institutions including banks, asset managers, hedge funds, custodians, central clearers and service providers. TLM Collateral Management offers an event-driven, exceptions-based workflow to manage the end-to-end activities and processes associated with collateral management.

TLM Collateral Management is an established, trusted solution, implemented by a broad range of financial institutions across the globe. SmartStream has an extensive product line and is staffed by highly experienced industry professionals, with in-depth operations knowledge. SmartStream has access to a vast pool of client knowledge, and the company’s ability to draw on this collective experience ensures customers are kept abreast of the latest industry developments.

The solution can be installed on-premise or accessed via a cloud-based, on-demand service. The latter deployment option removes the need for firms to buy and install their own hardware, shortening implementation times and minimising overheads. Smartstream’s Collateral On Demand offering provides physical segregation of client data to ensure that client information is never commingled.

In addition, unlike many other vendors, SmartStream allows firms to upgrade at their own pace.

A set of integrated messaging tools connects TLM Collateral Management to third party vendors and other industry partners, promoting greater levels of automation in relation to margin calls and clearing. A series of APIs also links the application to reporting solutions and downstream systems.

To meet the needs of service providers, the solution supports a client portal through which a bank’s customers can interact, in real time, with the collateral decisionmaking process.

TLM Collateral Management delivers an extensive QA testing suite, as a service. By using this facility, clients can adopt new functionality more rapidly, reduce risk, and avoid duplication of effort.

The solution is an integral component of SmartStream’s TLM platform, servicing downstream TLM liquidity and control solutions. The solution takes advantage of SmartStream’s global reconciliations and exception management solutions, as well as leveraging the strengths of the company’s message interface and the SmartStream Reference Data Utility.

The financial industry is under pressure to reduce the time and cost spent resolving exceptions, as well as to control risk more effectively. In response, TLM Collateral Management delivers:

  • Improved anticipation of operational and credit risk, allowing proactive planning of risk mitigation strategies
  • Reduced regulatory capital – financial institutions can apply the benefits of collateral in order to lower regulatory capital charges
  • A powerful intuitive interface that presents clear and logical paths for users. A management information dashboard assists senior staff with trend analysis and decision-making
  • Automated data capture – data is automatically drawn into the application, removing the need for it to be reentered. The solution filters this information and alerts users to potential problems
  • Streamlined back office workflow – automation of key tasks associated with margin calls, including data capture, validation, calculation and processing
  • Collateral optimisation – automated selection of collateral assets enables the reduction of funding costs
  • Seamless uptake of new regulations, such as Dodd-Frank, BCBS-IOSCO and Basel III, that require institutions to manage capital reserves and collateral when entering derivatives trades
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