The Challenge

Investment Managers trading OTC derivatives face increased regulatory obligations – most notably Initial Margin and Variation Margin – and significant pressures to cut costs and gain efficiencies. At the same time, the accessibility of modern technology and growing importance of data has expanded the role of collateral across the back to front office. Those investment managers using legacy collateral management technology – whether their own or provided by a vendor – often find it daunting and cost-prohibitive to update the technology and quickly respond as requirements change and new business opportunities emerge. Those firms previously able to manage collateral processes manually, using spreadsheets, can no longer afford to do so without risking violations of the regulations now in place. Therefore, we are seeing more and more investment managers aiming to automate, optimise and innovate across the entire collateral management lifecycle to gain competitive advantage.

The Solution

The CloudMargin platform is a cloud-based, end-to-end collateral and margin management workflow tool covering every aspect of the collateral management cycle. The single-instance platform automatically keeps firms up to date with key functionality that facilitates regulatory compliance and best practices by industry-leading firms that all contribute to its development. It also offers connectivity to best-in-breed technology partners and market infrastructure such as AcadiaSoft MarginSphere and SWIFT through one platform, provides real-time data and processing that all parties can view simultaneously from anywhere globally, and scales based on usage so firms can maintain costs. CloudMargin automates the entire workflow, supports the margining of all instruments and asset classes for cleared and non-cleared transactions, and provides the ability to permission different levels of control across a global team.

The Importance

The most pressing issue facing the industry through September 2020 is compliance with Initial Margin. Firms captured in Phase 4 and 5 are searching for a solution that they can quickly implement to be ready in time. CloudMargin’s solution not only brings automation, functionality, connectivity and simple user interface, all at a fraction of the cost of on-premise technology, it is easy and fast to implement. Firms previously relying on legacy solutions now pay a fraction of their previous expenses while benefiting from continuous updates at no extra cost and with no development work. CloudMargin’s cloud-based technology helps firms achieve agility critical to remaining competitive in a dynamic financial market, enabling clients to fulfil their technology, regulatory-compliance and cost-efficiency missions. The platform earned more than 15 industry awards and honours since 2015 for innovation and best-in-class technology.

Next steps

For more information about Initial Margin, visit our IM resource page: To book a demo or speak to a collateral expert, fill out the form:

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