4sight releases new collateral management interface
21 August 2012 London
Image: Shutterstock
Software and consultancy firm 4sight Financial Software has developed an interface between Germany-based Clearstream Banking’s KAGplus collateral management service and its 4sight securities borrowing and lending software solution.
The German Investment Act prevents German funds from lending more than 10 percent of their assets unless they trade through the KAGplus platform. The platform pools and allocates pledged collateral for each participating fund “while following sound risk management principles”, according to 4sight.
4sight developed the new interface as part of a wider project to implement its 4sight securities finance system for a European bank. The bank needed an interface that would allow it to communicate securities lending trades that are booked in 4sight’s securities finance solution to KAGplus.
When initiating a KAGplus-enabled borrow, the new interface enables 4sight’s system to automatically send a SWIFT message to Clearstream, so that the trade can be registered with KAGplus.
A borrow will remain blocked until Clearstream confirms with KAGplus that its position has been validated. The interface can warn a user about a negative outcome—if a borrow fails to register in KAGplus due to insufficient availability, for example—with alerts.
Martin Seagroatt, 4sight’s head of marketing, said: “The new interface will enable users of 4sight’s securities finance and collateral management system and the KAGplus service to increase straight through processing of trades and automate trade lifecycle management. This latest interface increases the integration options offered by 4sight securities finance as we leverage the connectivity we offer with third party solutions and service providers.”
The German Investment Act prevents German funds from lending more than 10 percent of their assets unless they trade through the KAGplus platform. The platform pools and allocates pledged collateral for each participating fund “while following sound risk management principles”, according to 4sight.
4sight developed the new interface as part of a wider project to implement its 4sight securities finance system for a European bank. The bank needed an interface that would allow it to communicate securities lending trades that are booked in 4sight’s securities finance solution to KAGplus.
When initiating a KAGplus-enabled borrow, the new interface enables 4sight’s system to automatically send a SWIFT message to Clearstream, so that the trade can be registered with KAGplus.
A borrow will remain blocked until Clearstream confirms with KAGplus that its position has been validated. The interface can warn a user about a negative outcome—if a borrow fails to register in KAGplus due to insufficient availability, for example—with alerts.
Martin Seagroatt, 4sight’s head of marketing, said: “The new interface will enable users of 4sight’s securities finance and collateral management system and the KAGplus service to increase straight through processing of trades and automate trade lifecycle management. This latest interface increases the integration options offered by 4sight securities finance as we leverage the connectivity we offer with third party solutions and service providers.”
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
