State Street Collateral+ introduces analytics and optimisation capabilities
22 November 2021 US
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State Street has welcomed pre and post-trade optimisation and margin analytics capabilities to its Collateral+ service, in partnership with Cassini Systems, a provider of pre and post-trade margin and collateral analytics for derivatives market participants.
Collateral+ now offers an integrated, modular approach to optimisation, which addresses collateral efficiency from multiple angles.
The platform integrates collateral and funding impact into the front-office decision strategy ahead of the trades being placed. Collateral+ can optimise margin and carry cost impact, providing a trade route by identifying all the ways to execute and clear the trade and highlighting the lowest cost.
The platform can also offer margin optimisation as a post-trade utility with tools such as novation and compression to lower margin and funding requirements.
In addition to this, State Street says one of the modules can offer collateral inventory optimisation based on clients’ collateral funding costs in combination with costs such as clearing fees. According to the bank, this optimisation highlights the optimal collateral placement and the lowest transaction cost routes.
Through the bank’s liquidity offerings, including sponsored repo and the newly launched peer-to-peer repo, clients can leverage incremental cash and optimised securities revenues to effectively execute and grow their investments.
Sam Edwards, head of Collateral+ in APAC for State Street, comments: “As an industry, we have a long-held ambition to deliver collateral impacts and trade opportunities to the decision makers in the front office. Our work with Cassini to develop Collateral+ to provide the intelligence and pre-trade knowledge to the desk is enabling State Street to deliver on this.”
Cassini Systems CEO Liam Huxley adds: “We are excited to partner with State Street on further enhancing the Collateral+ offering with optimisation capabilities and analytics that can bring its clients substantial cost savings and a true understanding of front-to-back costs across the entire lifecycle of a trade.
“The ability to apply these analytics to the Initial Margin requirements of UMR is a powerful way to identify optimal counterparties and manage thresholds strategically with each and every trading decision.”
Collateral+ now offers an integrated, modular approach to optimisation, which addresses collateral efficiency from multiple angles.
The platform integrates collateral and funding impact into the front-office decision strategy ahead of the trades being placed. Collateral+ can optimise margin and carry cost impact, providing a trade route by identifying all the ways to execute and clear the trade and highlighting the lowest cost.
The platform can also offer margin optimisation as a post-trade utility with tools such as novation and compression to lower margin and funding requirements.
In addition to this, State Street says one of the modules can offer collateral inventory optimisation based on clients’ collateral funding costs in combination with costs such as clearing fees. According to the bank, this optimisation highlights the optimal collateral placement and the lowest transaction cost routes.
Through the bank’s liquidity offerings, including sponsored repo and the newly launched peer-to-peer repo, clients can leverage incremental cash and optimised securities revenues to effectively execute and grow their investments.
Sam Edwards, head of Collateral+ in APAC for State Street, comments: “As an industry, we have a long-held ambition to deliver collateral impacts and trade opportunities to the decision makers in the front office. Our work with Cassini to develop Collateral+ to provide the intelligence and pre-trade knowledge to the desk is enabling State Street to deliver on this.”
Cassini Systems CEO Liam Huxley adds: “We are excited to partner with State Street on further enhancing the Collateral+ offering with optimisation capabilities and analytics that can bring its clients substantial cost savings and a true understanding of front-to-back costs across the entire lifecycle of a trade.
“The ability to apply these analytics to the Initial Margin requirements of UMR is a powerful way to identify optimal counterparties and manage thresholds strategically with each and every trading decision.”
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