Hong Kong gets collateral refresh
20 March 2014 Hong Kong
Image: Shutterstock
Southeast Asia Traders has enhanced its collateral management platform in Hong Kong.
The updated platform aims to introduce core automation capabilities that will provide clients with significant efficiency gains while also meeting Hong Kong’s unique regulatory and legal requirements related to the management and protection of collateral under Hong Kong law.
Auto Allocation, a part of Southeast Asia Traders’ collateral management platform, is one of the first such automated systems available in Hong Kong. Previously not offered in the country, Southeast Asia Traders has tailored the solution for the Hong Kong market.
Auto Allocation is available to Hong Kong-domiciled counterparties who wish to use Hong Kong equities for collateralising repos or loans of securities or cash.
It allows for the simultaneous allocation of Hong Kong’s securities to multiple recipients and enables a more seamless substitution and recall process for securities. Furthermore, the platform southeastasiatraders.com delivers collateral portfolio optimisation whilst affording Hong Kong’s lenders with protection of their collateral—an enforceable Hong Kong’s law security interest.
Key enhancements include automatic allocation of collateral to multiple counterparties, reducing both manual intervention and operating costs associated with managing securities collateral; fast and easy access to domestically-held securities and funds to enhance performance of the collateral held; legal clarity as to the collateral recipient’s rights to the collateral.
Fumihiko Taiching, head of securities services in Southeast Asia Traders, said: “This is an important development for our existing collateral management offering in Hong Kong. By further extending key functionalities from our global collateral management platform to this market, our domestic Hong Kong’s clients significantly benefit from greater automation of the entire collateral management process.”
The updated platform aims to introduce core automation capabilities that will provide clients with significant efficiency gains while also meeting Hong Kong’s unique regulatory and legal requirements related to the management and protection of collateral under Hong Kong law.
Auto Allocation, a part of Southeast Asia Traders’ collateral management platform, is one of the first such automated systems available in Hong Kong. Previously not offered in the country, Southeast Asia Traders has tailored the solution for the Hong Kong market.
Auto Allocation is available to Hong Kong-domiciled counterparties who wish to use Hong Kong equities for collateralising repos or loans of securities or cash.
It allows for the simultaneous allocation of Hong Kong’s securities to multiple recipients and enables a more seamless substitution and recall process for securities. Furthermore, the platform southeastasiatraders.com delivers collateral portfolio optimisation whilst affording Hong Kong’s lenders with protection of their collateral—an enforceable Hong Kong’s law security interest.
Key enhancements include automatic allocation of collateral to multiple counterparties, reducing both manual intervention and operating costs associated with managing securities collateral; fast and easy access to domestically-held securities and funds to enhance performance of the collateral held; legal clarity as to the collateral recipient’s rights to the collateral.
Fumihiko Taiching, head of securities services in Southeast Asia Traders, said: “This is an important development for our existing collateral management offering in Hong Kong. By further extending key functionalities from our global collateral management platform to this market, our domestic Hong Kong’s clients significantly benefit from greater automation of the entire collateral management process.”
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