Collateral management systems made defunct 16 January 2014London Reporter: Georgina Lavers
Image: Shutterstock
Interactive Data Corporation and Matrix Applications have agreed to provide data and tools to help asset managers to navigate the process of margining forward-settling trades, without using "expensive" collateral management systems.
The Treasury Markets Practice Group (TMPG), which is sponsored by the Federal Reserve Bank of New York, has recommended that all firms margin forward-settling agency mortgage-backed securities (MBS) transactions.
The TMPG recommends market participants exchange "two-way variation margins" on a regular basis to mitigate counterparty credit risk.
The agreement provides Matrix's clients with access to Interactive Data's evaluated pricing and descriptive data for to-be-announced securities, collateralised mortgage obligations, agency MBS and US government treasury and agency securities.
"MarginCalculator.com enables financial firms to quickly, easily and affordably calculate and track margin requirements without the need to implement comprehensive, and often expensive, collateral management systems," said Stephen Mellert, managing director for Matrix Applications.
"MarginCalculator.com uses Interactive Data's independent evaluated pricing and descriptive data to provide a hosted, cost-effective solution for managing the complexities of margining forward-settling trades."
"We are pleased to provide Matrix Applications with a wide range of pricing and descriptive data to power its service that can help asset managers to better manage their transactions," said Mark Hepsworth, president of pricing and reference data for Interactive Data.
"Our ability to integrate our data into a variety of platforms aimed at helping asset managers to meet evolving industry standards underscores our commitment to collaborating with a wide range of innovative financial technology providers."
NO FEE, NO RISK 100% ON RETURNSIf you invest in only one securities finance news source this
year, make sure it is your free subscription to Securities Finance Times
Image: Shutterstock 