Collateral management for OTC derivatives Gerrard Mahony Business Development Director
is a software company that has developed a “financial platform” and has been providing solutions for over twenty years in ...
inside riskart <ul><li>Back Office software – OTC Derivatives </li></ul><ul><ul><li>Management of OTC and Exchange-traded ...
Why a software for collateral management? <ul><ul><li>Post-Lehman lessons </li></ul></ul><ul><ul><li>Counterparty risk </l...
What does riskart offer? Management Reporting Management of collateral contracts (CSA) Import of  Market Data Calculation ...
Functionality <ul><ul><li>Management of Credit Support Annex (ISDA) contract details </li></ul></ul><ul><ul><ul><li>Thresh...
Characteristics of software <ul><li>Independent software module </li></ul><ul><ul><li>Easily integrated into client’s envi...
Strengths of Collateral management software <ul><li>Automatization of Middle/Back Office processes </li></ul><ul><ul><li>A...
riskart S.p.A. Via Montebello, 25 - 20121 Milano Telefono: 02 455 063 93 - Fax: 02 65 92 724
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Collateral Pres Eng 20 4 10

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  • Collateral Pres Eng 20 4 10

    1. 1. Collateral management for OTC derivatives Gerrard Mahony Business Development Director
    2. 2. is a software company that has developed a “financial platform” and has been providing solutions for over twenty years in the back office of banks, asset management companies and corporates.
    3. 3. inside riskart <ul><li>Back Office software – OTC Derivatives </li></ul><ul><ul><li>Management of OTC and Exchange-traded derivatives </li></ul></ul><ul><ul><li>Cash-flow calculations for all types of derivatives </li></ul></ul><ul><ul><li>Easily parametized for the insertion of new types of derivatives </li></ul></ul><ul><ul><li>Management of derivatives life-cycle </li></ul></ul><ul><ul><li>Management of settlement process </li></ul></ul><ul><ul><li>Creation of accounting entries </li></ul></ul><ul><ul><li>Compliance with IAS/IFRS accounting principles </li></ul></ul><ul><ul><li>“ Multi-entity” management </li></ul></ul><ul><ul><li>Reporting </li></ul></ul><ul><ul><li>Front Office deal capture </li></ul></ul><ul><li>Back Office software – Collateral Management </li></ul><ul><ul><li>Under development..... </li></ul></ul>
    4. 4. Why a software for collateral management? <ul><ul><li>Post-Lehman lessons </li></ul></ul><ul><ul><li>Counterparty risk </li></ul></ul><ul><ul><li>Optimization of liquidity </li></ul></ul><ul><ul><li>A more efficient use of capital </li></ul></ul><ul><ul><li>Automatizing back office processes </li></ul></ul><ul><ul><li>Management reporting </li></ul></ul>
    5. 5. What does riskart offer? Management Reporting Management of collateral contracts (CSA) Import of Market Data Calculation interest payments Calculation of counterparty exposure Margin and Re-call management Collateral portfolio reconciliation Settlement module
    6. 6. Functionality <ul><ul><li>Management of Credit Support Annex (ISDA) contract details </li></ul></ul><ul><ul><ul><li>Thresholds, Evaluation Agent, Assets ecc. </li></ul></ul></ul><ul><ul><li>Calculation of net exposure per counterparty </li></ul></ul><ul><ul><ul><li>Netting per product </li></ul></ul></ul><ul><ul><ul><li>Cross-product netting per counterparty </li></ul></ul></ul><ul><ul><li>Management of market events </li></ul></ul><ul><ul><ul><li>Credit events ecc. </li></ul></ul></ul><ul><ul><li>Mark-to-Market of portfolio </li></ul></ul><ul><ul><li>Reconciliation management per counterparty </li></ul></ul><ul><ul><ul><li>Import/Export of XML files </li></ul></ul></ul><ul><ul><li>Margin calculation </li></ul></ul><ul><ul><li>Automatic creation of Margin Call/Recall messages </li></ul></ul><ul><ul><ul><li>SWIFT messages or </li></ul></ul></ul><ul><ul><ul><li>Letter/e-mail/fax </li></ul></ul></ul><ul><ul><li>Interest calculations </li></ul></ul><ul><ul><li>Creation of notification messages/payment instructions </li></ul></ul><ul><ul><li>Dispute management </li></ul></ul><ul><ul><ul><li>Formal notification, monitoring etc. </li></ul></ul></ul><ul><ul><li>Management Reporting </li></ul></ul><ul><ul><ul><li>Market positions, interest, break-down assets etc. </li></ul></ul></ul>
    7. 7. Characteristics of software <ul><li>Independent software module </li></ul><ul><ul><li>Easily integrated into client’s environment </li></ul></ul><ul><li>Standard Technology </li></ul><ul><ul><li>Client/Server architecture </li></ul></ul><ul><ul><li>Pure HTML client (Explorer, Firefox ecc.) </li></ul></ul><ul><ul><li>Database SQL/Oracle/DB2 </li></ul></ul><ul><ul><li>Programming language C++ </li></ul></ul><ul><ul><li>Import/Export XML files </li></ul></ul><ul><li>Local support </li></ul><ul><ul><li>Italian company </li></ul></ul><ul><ul><li>Team of financial analysts </li></ul></ul><ul><li>Software customization </li></ul><ul><ul><li>Rapid realization </li></ul></ul><ul><ul><li>Software integrity maintained </li></ul></ul><ul><li>Reporting </li></ul><ul><ul><li>Integration with MicroStrategy </li></ul></ul><ul><ul><li>Other reporting packages may be used (e.g. Business Objects etc.) </li></ul></ul>
    8. 8. Strengths of Collateral management software <ul><li>Automatization of Middle/Back Office processes </li></ul><ul><ul><li>Automatization Margin Call/Recall </li></ul></ul><ul><ul><li>Elimination of manual errors </li></ul></ul><ul><li>Pro-active management of collateral </li></ul><ul><ul><li>Counterparty risk </li></ul></ul><ul><ul><li>Credit risk </li></ul></ul><ul><ul><li>Portfolio risk </li></ul></ul><ul><li>More diligent liquidity management </li></ul><ul><li>Optimization in management of capital </li></ul><ul><li>Automatic reconciliation </li></ul><ul><ul><li>Netting of positions </li></ul></ul><ul><ul><li>Reduction in errors </li></ul></ul>
    9. 9. riskart S.p.A. Via Montebello, 25 - 20121 Milano Telefono: 02 455 063 93 - Fax: 02 65 92 724

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