Stamford, Connecticut, October 10, 2012 - Woodbine Associates (http://www.woodbineassociates.com), the capital markets and consulting and research firm, announces the release of its latest report, "Collateral Management and Vendor Systems." The report examines the business and operational challenges introduced by central clearing of OTC derivatives and increased margin requirements and evaluates the capabilities of the nine leading vendor collateral management systems.

The report is intended to give firms a basis to evaluate their current capabilities and provide a framework for the selection of collateral management systems.

“Central clearing, initial margin requirements and the cost of collateral will force many firms to significantly upgrade their systems,” said Sean Owens, Director of Fixed Income and author of the report.  “Users need a flexible, automated workflow that centralizes collateral management for all traded products and securities.  They also need enhanced analytics, forecasting and inventory management.  Under the new regulations collateral and margin will play key roles in OTC derivative transactions, including pricing, counterparty, product, venue and CCP selection.  Systems will have to seamlessly integrate collateral management with risk management, funding and trading.”

The Report looks beyond core processing to include elements of risk, liquidity, trading and funding that will be more deeply entwined with the management of collateral and margin. Cleared OTC derivatives, bilateral margin requirements and new liquidity standards will require firms to actively manage collateral across the organization on a more integrated and timely basis. To be effective, many firms will turn to third-party vendor solutions to upgrade their capabilities. This report provides a comprehensive and independent analysis of those options. 

Key Points:

This report provides strategic as well as tactical insights to firms active in trading and managing collateral for OTC and listed derivatives and other products and securities. 

Vendor systems reviewed include: 4sight Xpose, IBM Algorithmics Collateral Operations, IntegriDATA CAARS, Lombard Colline, Misys Enterprise Collateral, Murex MX Collateral, Omgeo ProtoColl, OpenLink Financial (Findur) and SunGard Apex Collateral.
The report contains 82 pages with 16 figures and tables.

Sean Owens, Director of Fixed Income Research and Consulting, has more than a decade of OTC derivatives trading experience.