CloudMargin and DTCC-Euroclear’s GlobalCollateral unit have
entered into an agreement to connect CloudMargin with the latter’s Margin
Transit Utility (MTU). The agreement expands CloudMargin’s settlement
capability and enables users to access MTU from the cloud, fully automating the
entire collateral lifecycle.
CloudMargin is the first technology provider to join GlobalCollateral’s Partner
Program, with MTU integration efforts currently underway.
MTU is an industry solution that automates the processing
and settlement of margin and collateral for dealers and buy-side firms. The
solution reduces risk and costs for market participants by securely capturing
settlement instructions, accelerating processing velocity, improving visibility
and consolidating reporting, the firm says.
Through this partnership, mutual clients logged onto CloudMargin can access
full MTU capabilities including automatically sending settlement instructions
to their custodians enriched with centrally stored settlement instructions
(SSIs) from DTCC’s Alert database. Users will also receive MTU’s automated
intraday settlement status information directly into CloudMargin. This full
automation of the collateral lifecycle reduces manual touch points, ensures
data accuracy and creates increased transparency into the collateral process,
the firm claims.
“This integration will enable a true end-to-end solution,
allowing our mutual clients to streamline and scale up processes at a time of
increasing collateral and margin call demands,” says Ted Leveroni, chief commercial
officer at GlobalCollateral.
“We already have significant interest among our clients
and prospects, particularly in this environment where the requirements to post
daily Variation Margin have introduced a pressing need for technological
solutions and a community of providers available at clients’ fingertips,”
adds Simon Millington, CloudMargin head of product management.