Strate and CloudMargin partner for South African OTC derivatives solution
19 July 2017 Sandton, South Africa
Image: Shutterstock
Collateral and margin solution provider CloudMargin and South African central securities depository Strate have integrated their platforms to provide improved automation and efficiencies to the country’s over-the-counter derivatives market.
According to CloudMargin, the move makes triparty messaging and collateral optimisation more accessible for both buy- and sell-side participants in the country.
The agreement enables clients to use their collateral held at Strate to cover their margin calls in the OTC derivatives market.
South African firms currently preparing to meet new regulatory requirements for non-cleared OTC derivatives margins, which is due to take effect on 1 September.
The new rules will require enhanced collateral management capability from both the buy-side and the sell-side, and create demand for CloudMargin and Strate’s joint venture.
In explaining the merger CloudMargin said: “For local market participants without their own Swift membership, this previously would have been a time-consuming, manual process to handle messaging related to collateral instructions, confirmations and settlement.”
“Now, they can take advantage of the CloudMargin and Strate Collateral Management Services straight-through processing capability via Swift.”
Lee McCormack, CloudMargin’s head of strategy, said: “We are delighted to roll out this breakthrough service in conjunction with Strate collateral management services to market participants in South Africa, helping them increase their efficiencies via our cloud-based platform.”
“We are continuing to build an interconnected network of organisations globally that give clients one-stop access to a broad range of collateral management and other related services for cleared and uncleared derivatives transactions.”
Steve Everett, general manager of Strate collateral management services, said: “We are delighted to partner with CloudMargin to provide a fully integrated, cost-effective and powerful collateral management capability to the South African market.”
According to CloudMargin, the move makes triparty messaging and collateral optimisation more accessible for both buy- and sell-side participants in the country.
The agreement enables clients to use their collateral held at Strate to cover their margin calls in the OTC derivatives market.
South African firms currently preparing to meet new regulatory requirements for non-cleared OTC derivatives margins, which is due to take effect on 1 September.
The new rules will require enhanced collateral management capability from both the buy-side and the sell-side, and create demand for CloudMargin and Strate’s joint venture.
In explaining the merger CloudMargin said: “For local market participants without their own Swift membership, this previously would have been a time-consuming, manual process to handle messaging related to collateral instructions, confirmations and settlement.”
“Now, they can take advantage of the CloudMargin and Strate Collateral Management Services straight-through processing capability via Swift.”
Lee McCormack, CloudMargin’s head of strategy, said: “We are delighted to roll out this breakthrough service in conjunction with Strate collateral management services to market participants in South Africa, helping them increase their efficiencies via our cloud-based platform.”
“We are continuing to build an interconnected network of organisations globally that give clients one-stop access to a broad range of collateral management and other related services for cleared and uncleared derivatives transactions.”
Steve Everett, general manager of Strate collateral management services, said: “We are delighted to partner with CloudMargin to provide a fully integrated, cost-effective and powerful collateral management capability to the South African market.”
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
