COLLINE Newsletter Issue 13 | Q1 | 2023
Vote for COLLINE, shortlisted for the FTF News Technology Innovation Awards 2023
VERMEG is thrilled to announce that COLLINE has been nominated, this year again, for the ‘BEST SELL-SIDE COLLATERAL MANAGEMENT SOLUTION’ category in the FTF News Technology Innovation Awards 2023. The award will be decided by an industry-wide vote that will close on April 28, 2023.
This Award recognizes the accomplishments of a provider that has made great strides in helping sell-side operations maximize their collateral management operations via advances to the workflow, IT systems, and counterparty interactions.
VERMEG’s COLLINE was proud to be the Award’s Winner for 2022 last year, recognized by the industry votes. We count on you to cast the vote for us again today.
VERMEG recertified SOC 2 Type II
VERMEG has successfully obtained the System Organisation Control SOC 2 Type II certification, for the second consecutive year, following a period of extensive auditing.
The certification is proof for our effective controls based on the trust services criteria relating to Security, Availability, Confidentiality and Processing Integrity.
SOC2 Type II is the standard for security compliance by hosted service providers. This independent review acknowledges that VERMEG has met the stringent requirements set forth by the AICPA.
When trusting an application with highly sensitive and confidential information, obtaining this certification is essential.
COLLINE, a technology enabler solution for Collateral Management transformation
“What if” is a good question to always ask oneself
The recent events in the financial markets highlighted (once again) the importance of a robust and resilient collateral management infrastructure. It unveiled at the same time the need for new strategies to avoid uncontrolled collateral costs during those turmoil times.
Collateral Management should transform to onboard new functions that can help predict collateral demands for future events and if the ‘perfect storm’ happens, be intelligent and flexible to keep the usual levels of automation, transparency and optimization.
At VERMEG we have been consistently investing in COLLINE, our collateral solution, to be the main technology enabler of such transformation. The target is to build an operating model that allows navigate financial market volatilities with minimal costs and simulate potential future events’ stress on collateral assets pools and liquidity.
COLLINE features evolution
Product investments have been focused on helping our clients and the industry achieve better efficiency through:
⁄ Consolidating collateral management in a unique platform across asset classes: OTC derivatives, cleared OTCs derivatives, Repo, SBL, TBAs and ETDs. Both Principal and Agency Businesses are managed.
⁄ Optimizing collateral pledges to reduce related costs, automate margin calls deliveries, manage liquidity and maximize the inventory utilization. “What if” scenarios complement such optimization.
⁄ Streamlining connectivity to utilities and agents through the onboarding of new standards like CDM (Common Domain Model) in the CSAs and complex Eligible Collateral Schedules representation.
⁄ Reducing IT costs through new technologies like PostgreSQL for the database management system and efficient SaaS services.
Besides efficiency gains, COLLINE ensures continuous compliance to the regulatory framework evolution (CSDR, EMIR Refit, UMR related market practices, etc.…) and the new standards like ESG. Our goal is to help our clients and the industry offer new services and to accompany our clients’ Businesses growth.
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.
Email Processor live at one of the major banks in North America to automate the manual treatment of margin calls and interest reconciliation emails. Another German bank is planned to go live in the next quarter.
Click here to know more about VERMEG’s Email Processing Digital Journey.
VERMEG is Sponsoring & Exhibition at ISLA 30th Annual Securities Finance & Collateral Management Conference
VERMEG is excited to a sponsor of the ISLA 30th Annual Securities Finance & Collateral Management Conference, which will be held in LISBON on June 20-22, 2023.
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.
This conference has become a must attend event in finance and collateral management, and VERMEG is glad to be part of it.
Come visit us at Booth N1, discuss the latest innovations and answer all your questions.