VERMEG has integrated the Common Domain Model (CDM) into its COLLINE collateral management system to support the consumption of digitised regulatory initial margin (IM) credit support annexes (CSAs). The free-to-use CDM data standard aims to reduce operational risk, the potential for errors and disputes, and dramatically speed up customer onboarding times. Key data from regulatory IM CSAs negotiated on the International Swaps and Derivatives Association (ISDA)’s Create platform can be digitised and integrated into the COLLINE system, reducing manual processing costs and resources. VERMEG is the first entity to integrate the CDM to improve the efficiency of collateral processes, and several other firms are currently in testing. ISDA has digitised crucial regulatory margins and developed use cases for the CDM to streamline collateral processes and reduce operational, liquidity, and counterparty risks. Scott O’Malia, chief executive of ISDA, remarks: “We are delighted that VERMEG has put the CDM to work within its COLLINE collateral management system, which will expedite collateral management onboarding and decrease related operational risks. “We are working with multiple technology providers and end users to bring greater efficiency to key collateral processes.” Wassel Dammak, collateral solutions strategy at VERMEG, notes: “We are proud to be among the early adopters of the CDM standards in collateral management. “The new features efficiently streamline agreement onboarding in COLLINE, significantly reducing costs for both existing clients and new customers.”
