Nomura has traded-in its outsourced collateral management provider for IHS Markit’s collateral solution.
IHS Markit has said in a research note on the new mandate that it can reduce Nomura Asset Management’s operational costs and optimise efficiency with its Collateral Manager solution.
Its solution manages over-the-counter (OTC) collateral and the trade lifecycle with a “comprehensive, end-to-end solution,” said IHS Markit.
Additionally, IHS Markit said its solution adds a future-proof cloud-based solution, visibility and control over the collateral processed, and allows for a centralised and standardised workflow.
In its research note, IHS Markit said it was able to secure Nomura as a user of its platform in part because of the heightened regulatory demand under the Uncleared Margin Rules (UMR), which is currently being rolled out in phases, and scrutiny over collateral agreements.
IHS Markit explained that, as a result, the volume of disputes escalated to the Nomura team from its former outsource provider to surge exponentially
Commenting on the service provider switch, a spokesperson for Nomura said: “IHS Markit's solution fits the collateral management need that Nomura cannot deliver in-house alone. We look forward to continuing to meeting regulatory and market requirements in partnership with IHS Markit's experts.”
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