Maintaining disparate front and back office systems connected to the collateral ecosystem is not just costly, it is also a source of lost profits. As firms speed up their collateral systems rationalization projects, the best outcomes will be supported by understanding how trading P&L will benefit from integrating cash and securities inventory with the full trading, risk and settlements environment.

The idea that collateral management systems in the front and back office should be an integral part of a technology stack is now considered industry standard: in an era where Straight-through Processing and data flexibility are the norm, systems interactions should be taken for granted. The ability to generate real revenue from systems that connect directly with each other, or better yet, one system that delivers full front to back office functionality, has moved from wishful thinking to practical reality. This includes not only collateral management but also trading, risk and settlements.