VERMEG Integrates Common Domain Model into COLLINE Collateral Management System
NEW YORK, June 10, 2024 – The International Swaps and Derivatives Association Inc. (ISDA) has announced that VERMEG, a technology provider for the banking and insurance sector, has integrated the Common Domain Model (CDM) into its COLLINE collateral management system to support the consumption of digitized regulatory initial margin (IM) credit support annexes (CSAs).
Implementing the CDM – a free-to-use data standard for financial products, trades and lifecycle events – will reduce operational risk and the potential for errors and disputes and dramatically speed up onboarding times for customers. For example, key data from a regulatory IM CSA negotiated on the ISDA Create online negotiation platform can be digitized using the CDM and flow seamlessly through to the COLLINE system as part of a contract lifecycle management strategy, cutting the resources and costs associated with manual processing.
VERMEG is the first entity to integrate the CDM to improve the efficiency of collateral processes, with several other firms currently in testing. As well as digitizing key elements of regulatory IM and variation margin CSAs, ISDA has developed use cases that apply the CDM to collateral representation, margin and settlement processes, margin call issuance and response messages, and cash collateral interest processing. These use cases have the common goal of reducing operational, liquidity and counterparty risks.
“We are delighted that VERMEG has put the CDM to work within its COLLINE collateral management system, which will expedite collateral management onboarding and decrease related operational risks. We are working with multiple technology providers and end users to bring greater efficiency to key collateral processes,” said Scott O’Malia, Chief Executive of ISDA.
“We are proud to be among the early adopters of the CDM standards in collateral management. The new features efficiently streamline agreement onboarding in COLLINE, significantly reducing costs for both existing clients and new customers,” said Wassel Dammak, Collateral Solutions Strategy at VERMEG.
The CDM is an open-source standard hosted by FINOS. More information is available here.
Find out more about ISDA’s collateral initiatives using the CDM by clicking here.
More information on all ISDA’s digital solutions is available on the ISDA Solutions InfoHub.
For Press Queries, Please Contact:
Nick Sawyer, ISDA London, +44 20 3808 9740, nsawyer@isda.org
Joel Clark, ISDA London, +44 20 3808 9760, jclark@isda.org
Christopher Faimali, ISDA London, +44 20 3808 9736, cfaimali@isda.org
Nikki Lu, ISDA Hong Kong, +852 2200 5901, nlu@isda.org
Wassel Dammak, VERMEG France, +33 6 74 55 02 90, wadammak@vermeg.com
About ISDA
Since 1985, ISDA has worked to make the global derivatives markets safer and more efficient. Today, ISDA has over 1,000 member institutions from 77 countries. These members comprise a broad range of derivatives market participants, including corporations, investment managers, government and supranational entities, insurance companies, energy and commodities firms, and international and regional banks. In addition to market participants, members also include key components of the derivatives market infrastructure, such as exchanges, intermediaries, clearing houses and repositories, as well as law firms, accounting firms and other service providers. Information about ISDA and its activities is available on the Association’s website: www.isda.org. Follow us on X, LinkedIn and YouTube.
About VERMEG
VERMEG is a leading provider specialized in software and digital solutions for collateral management, regulatory and compliance, and insurance industries. As a leader in the collateral market, its technology targets key challenges driving operational efficiency, cost savings, optimization and risk mitigation. Encapsulating 25 years of experience in the financial sector, VERMEG has a deep understanding of the current challenges facing the industry. Through our digital solutions developed with low-code no-code technology, Veggo platform by VERMEG offers ready-to-use apps, perfectly tailored to our clients’ needs. This guarantees that clients achieve increased efficiency, improved user experience and the ability to grow their business and reduce costs. www.vermeg.com. Follow us on X, LinkedIn and YouTube.