COLLINE Newsletter Issue 14 | Q2 | 2023

COLLINE Newsletter Issue 14 | Q2 | 2023


Chartis Research: VERMEG is placed ‘Category Leader’ & received the ‘Recognition on Innovation’ for 2023

We are delighted to announce that VERMEG has been placed as “Category Leader” by Chartis Research, in Collateral Management Systems for Capital Markets – Buy-Side and Sell-Side, Market and Vendor Landscape Quadrant report for 2023.

We have also received Chartis recognition of Innovation for 2023, as Large Enterprise Insurance/Asset Management Collateral Coverage, on the “Collateral management recognition: completeness of offering and innovation” Table.

We are glad that this ranking has been achieved after a full examination process with Chartis research experts for our COLLINE solution, VERMEG’s main technology enabler of transformation to a robust and resilient Collateral Management Infrastructure.

Congratulations to COLLINE & stay tuned for greater achievements!

COLLINE, the Collateral Technology of the future!

At VERMEG, we are constantly investing in COLLINE (more than 16000 Man/Days on a yearly basis) to help our clients and the industry achieve the following goals:

Reduce the ‘Total Cost of Collateral’ through:

◾ Consolidating collateral management in a unique platform across business lines (OTC derivatives, cleared OTCs, Repo, SBL, TBAs, ETDs) for both Principal and Agency models.

◾ Optimizing collateral mobilization to reduce related cost, manage liquidity and maximize the inventory utilization according to multiple objectives. This optimization automates all the deliveries bookings as well, achieving higher STP levels.

◾ Packaging and standardizing connectivity to different utilities and ‘players’ in the collateral life cycle (ISDA Create, Acadia, Custodians, Triparty Agents, etc.…). We are also involved in promoting the CDM model for the CSAs IM & VM agreements and the Eligible Collateral Schedules.

◾ Decrease the IT costs by onboarding new technologies (Technical stack evolution, Resilient SaaS offer, New open source RDMS like PostgreSQL, Connectivity to DLTs, etc.)

Support the industry in the compliance with the regulatory framework evolution (UMR, CSDR, etc.…) and the new standards like ESG

Enable our clients’ business to offer new services within the Collateral Management space. Our goal is to accompany our clients’ growth by leveraging COLLINE added value Services.

Feel free to contact VERMEG’s Sales Representatives for more information.

COLLINE modular and comprehensive architecture

Financial Institutions can use one or many of the following services available in the latest COLLINE:

A comprehensive repository for legal and collateral agreements, covering CSAs, GMRAs, GMSLAs, MSFTAs, ETDs and bespoke agreements with interoperability based on Common Domain Model (CDM) standards.

A flexible and rich rule builder for Eligible Collateral Schedules covering complex rules introduced by the extension of collateral eligibility to additional asset classes. Eligibility checks are done in real time for both bilateral and Triparty businesses.

Initial Margin Calculation using SIMM or Grid methodology and IM threshold monitoring.

STP – SWIFT connectivity to Triparty agents (Bony, JPM, Clearstream, Euroclear, BNP Paribas, State Street) and Long-box inventory mirroring.

STP – SWIFT connectivity to Third Party custodians (More than 100 custodians globally).

Cross-agreement margining for multiple business lines (Non cleared OTCs, Cleared OTCs, Repo, SBL, ETDs).

A centralized inventory to maintain collateral asset pools and mirror the overall securities positions and cash balances held at custodians and cash agents, with full and global transparency across venues.

COLLINE Optimizer to automate delivery and return collateral. The source of rules can be any combination of client-sourced rankings or COLLINE sourced algorithmic with a native and real time integration with agreements’ collateral eligibility schedule and management of rehypothecation.

Email Processor – Automation of margin workflow for inbound emails through an embedded digital app that parses emails and triggers automatically the processes in COLLINE or any third-party collateral solution.

COLLINE Product News

Version 15.13 to be released by end of July! This new version of COLLINE brings the following new features:

UMR currency threshold choice to be able to set the more convenient negotiated currency.

Interest reconciliation through Acadia utility to automate the process with all counterparts that are on Acadia. The Email processor is used to automate the same process for counterparts that are not on Acadia.

Email Processor enhancements: The service is extended to automate the margin processes for clients that are not connected to the Acadia messaging utility.

COLLINE new UI first phase will be part of this delivery. The rest of the screen will be refreshed in the next COLLINE version V15.14.

Feel free to contact VERMEG’s Sales Representatives for more information.

COLLINE Implementation News

Two new clients in Turkey! COLLINE has entered the Turkish market thanks to partners, Teams are fast tracking the implementations that are both planned for a few weeks.

A Japanese client moved successfully to our SaaS service: This is the first runner to move to the cloud within our clients’ base in Japan. Other clients globally are planning to move to reduce affectively the cost of the infrastructure and the upgrades management through the SaaS service.

PostgreSQL move: A Canadian client is moving to this new Open-source database management system to achieve cost reduction while keeping the same service.

New at the ISDA 37th Annual General Meeting (AGM): CDM Expo

VERMEG was thrilled to take part of the ISDA’s 37th Annual General Meeting (AGM) that took place on May 9 – 11 at the Swissotel Chicago.

This 3-day event showcased high-caliber keynotes, thought-provoking panels and for the first time an Expo on Common Domain Model (CDM) to learn about cost saving and risk reducing CDM use cases that are production-ready and in development.

What is CDM and how can you use it to optimize your business?

Isabelle ARDITI, VERMEG’s Head of Professional Services for Collateral Management, was at the CDM Expo Room to provide a dedicated Demo about this topic.

Contact us for more information, to see a demo or to learn more about the power of the CDM.

VERMEG Exhibited at ISLA 30th Annual Securities Finance & Collateral Management Conference

VERMEG was pleased to be a sponsor of the ISLA 30th Annual Securities Finance & Collateral Management Conference, was held in LISBON on June 20-22, 2023.

Collateral management has been a hot topic among companies at ISLA 30th Annual Securities Finance & Collateral Management Conference in Lisbon. “Firms are challenged and have limited bandwidth to implement new technology, but most recognize that maintaining outdated legacy systems is costly.”

Today, securities lending and financing markets have the capacity and flexibility to look at new trade ideas and provide solutions to the broader challenges associated with liquidity, collateral mobilization, and capital efficiencies across the wider financial markets eco-system.

Reach out to VERMEG team to get more information.

VERMEG is Exhibiting at the SIBOS 2023 in Toronto

VERMEG team is excited to be part of the SIBOS 2023 as an exhibitor, in the Metro Toronto Convention Centre from the 18th to the 21st of September.

The conference is a must attend event in the finance and collateral management landscape, where the most important issues facing the financial industry will be debated and addressed.

Visit our booth N° K30, to discuss with our teams the latest Technology in Collateral Management, discover COLLINE solution, the one stop-shop for risk management, margin automation and collateral services across all asset classes.