Prominent Bank in Asia Chooses Adenza’s Platform to Opportunity to Manage and Optimize Collateral and UMR
A major Chinese bank has selected Adenza’s Calypso Collateral Management and Margin solution to fully integrate its valuation, margin risk exposures, collateral processing, and uncleared margin rule (UMR) regulatory compliance.
Compelling event and decision drivers
In part arising from increasing trading activities with overseas counterparties, banks are facing an ever-increasing number of regulatory mandates including the recent UMR. To comply with new global regulations while achieving their business objectives, banks must automate processes and reduce operational risk.
Recognizing that maintaining outdated functions on an obsolete trading and processing platform would not position them to optimize and futureproof their counterparty risk compliance and trading profitability, one of the top 10 Chinese commercial banks sought to modernize. In Adenza, the bank identified the most efficient path to automate their end-to-end collateral management process on a single, transparent platform.
Adenza’s Calypso Collateral Management and Margin Solution
We deliver a real-time, single, integrated, and open platform that supports end-to-end collateral management and UMR compliance. Our solution fully automates collateral management with straight-through processing (STP) workflows supporting:
- Centralized agreements
- Cleared and uncleared trades across asset classes
- UMR Standard Initial Margin Model (SIMM) ISDA-certified margin calculation
- Risk factors and backtesting
- Global integration
- Tri-party services integration
Users enjoy the experience of a having a holistic single-platform solution characterized by powerful values including:
The benefits
Now that many Asian banks are required to comply with UMR and the complex Securities Financing Transactions Regulation (SFTR), we are seeing consistent growth across Asia, particularly with an expansion in the Chinese market for the Calypso Collateral Management and Margin solution.
Our solution enables both buy- and sellside institutions to strategically reduce counterparty credit risk and improve operational efficiency via STP workflows and seamless integration with existing front-to-back trading systems.
- RG Manalac, Managing Director, Asia Pacific, Adenza
