Transcend, the provider of inventory, financing and liquidity management, has extended its software suite with an automated collateral management system.
CCP Central is the first platform to connect and automate margin and collateral management activities across the global network of central clearing counterparties (CCP), according to Transcend.
Central counterparties achieved record initial margins in 2020 and over-the-counter (OTC) derivative margins increased 23% year-on-year. So it’s no longer scalable, Transcend says, for companies to manually process CCP margin requirements.
CCP Central helps address some of the industry’s margin challenges with its out-of-the-box connectivity and ability to harmonize data between CCPs, exchanges, and internal platforms.
The software also provides comprehensive analysis of margin calls and balances, collateral schedules, positions and trades, and tripartite required values.
It also uses straight-through processing to automatically execute funding decisions and monitor frameworks for tight control of risk exposures.
Transcend CEO Bimal Kadikar said: “Managing CCP margins and collateral is critical to a workflow in capital markets, but the lack of transparency and disconnected manual processes that companies have come to grips with is a supported so far have created a high degree of risk which is only increasing. as the pressures on the margins of the CCP increase. ”