Following the recent global financial crisis, we have seen increased regulation and the posting of collaterals to a funding transaction has now taken on a greater importance.For any transactions you conduct with central banks, trading of repos and securities or even derivatives transactions, you are required to post collateral. And the same is true for Pfandbrief and securitization transactions. Additional regulatory requirements made by the European Market Infrastructure Regulation (EMIR) on the Liquidity Coverage Ratio (LCR) or even the level of asset encumbrance have made the need for financial institutions to have strong collateral management even more pressing.
Irrespective of whether the collateral requirements are from a quantitative or qualitative point of view, financial institutions are looking at the associated operational costs and/or consolidating areas so that the data is centralized and visible in one system.
And with reduced costs, you can generate additional income.
TXS Collateral Allocation Management offers you a solution that helps you cope with any operational changes. It reduces both the process and
technical complexity of your tasks and delivers you high flexibility in terms of managing your collateral management needs.
Assets are sorted by type and customer in various source systems. Very high
costs to connect all the systems, with several interfaces required. Further work required
in specialized modules to apply the asset to a particular funding type or instrument.