SS&C Technologies Holdings reports from Windsor, Connecticut, the latest release of its straight-through-margining service model for collateral management, Over the Counter Collateral Optimised (OTCCO). This will help investment managers simplify preparations for margining of non-cleared OTC derivatives, it says.
Notes Tom Kirkpatrick, managing director and European chief operating officer, SS&C GlobeOp: “The road to regulatory compliance for the margining of non-cleared OTC derivatives will be disruptive to the investment management industry. Within the disruption lies opportunity, and that is why we are encouraging our customers to engage our collateral management service, OTCCO. The ability to leverage SS&C’s world-class operating model to support straight-through-margining with appropriate controls will allow managers to quickly adapt to seize new business opportunities.”
SS&C says OTCCO integrates middle office processes such as independent valuation and real-time collateralised portfolio reconciliation, with collateral management systems to provide accuracy in the calculation of collateral requirements. Collateral margin communications with counterparties are managed via a margin confirmation community, to obtain real-time confirmation of margin movements.
SS&C adds that it has also connected its wire processing technology to include settlement instructions to the custodian or prime broker. OTCCO enables customers to leverage an automated, straight-through-processing model from reconciliation, collateral calculation and collateral call confirmation to wire processing.