Monte Titoli helps out with collateral
18 September 2012 London
Image: Shutterstock
Monte Titoli has launched ‘X-COM', its triparty collateral management service that aims to
allow banks' treasury departments and operations departments to manage their investment strategies and financing more efficiently.
The two parties that are involved in a transaction delegate the management of collateral to a third party, such as Monte Titoli. Monte Titoli acts as a 'neutral' agent and common custodian for the collateral that is held on behalf of both parties, with the aim of minimising parties’ investment in back-office resources and IT.
During the initial implementation phase, X-COM will interact with Bank of Italy's pooling system to support eurosystem credit operations.
The second phase will see the service expand to further centralised activity of collateral management to support different business needs, such as financing, securities lending and margin management for operations with central counterparties.
Paolo Cittadini, CEO of Monte Titoli, said: "The new X-COM service responds to our customers' growing need for diversification of financing tools and efficiency on the markets, offering a collateral management service essential to every market participant."
"This project has a systemic relevance, not only for the entity and quantity of subjects involved but also to support the inter-bank market."
allow banks' treasury departments and operations departments to manage their investment strategies and financing more efficiently.
The two parties that are involved in a transaction delegate the management of collateral to a third party, such as Monte Titoli. Monte Titoli acts as a 'neutral' agent and common custodian for the collateral that is held on behalf of both parties, with the aim of minimising parties’ investment in back-office resources and IT.
During the initial implementation phase, X-COM will interact with Bank of Italy's pooling system to support eurosystem credit operations.
The second phase will see the service expand to further centralised activity of collateral management to support different business needs, such as financing, securities lending and margin management for operations with central counterparties.
Paolo Cittadini, CEO of Monte Titoli, said: "The new X-COM service responds to our customers' growing need for diversification of financing tools and efficiency on the markets, offering a collateral management service essential to every market participant."
"This project has a systemic relevance, not only for the entity and quantity of subjects involved but also to support the inter-bank market."
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