Collateral Management Designed for the Buy Side
CAARS Collateral Management System Overview
In the wake of the financial crisis, both regulators and investors have placed greater emphasis on transparency and counterparty risk. As a result, collateral management, a previously overlooked back-office function, has become a focal point of regulatory scrutiny and responsible risk management.
As the demand for quality collateral continues to grow, firms must effectively manage their counterparty risk and ensure the efficient allocation of capital. Despite this, many firms continue to manage collateral using cumbersome spreadsheets, resulting in avoidable errors, missed opportunities, and lost revenue.
CAARS Collateral Management System automates the time-consuming task of collateral management. With CAARS, Operations knows the exact positions of collateral assets in real time, enabling them to better manage capital and mitigate risk.
CAARS Collateral Management System Benefits
Mitigate Risk
- Efficiently allocate capital and actively manage returns
- Monitor counterparty exposure and Reduce Risk
Increase Transparency
- Centralized view of all collateral and eligible positions reconciled between internal and broker records
- Clear, accurate, and flexible collateral reporting
Strengthen Internal Controls
- Quickly identify over-pledged positions and minimize the risk of failed trades
- Eliminate manual data entry and lessen the chance for human error
Improve Flexibility
- Increase velocity and scalability of collateral movements
- Reliably use securities as collateral taking account fluctuations and haircuts
Enhance Efficiency
- Improve productivity, reduce collateral management time by up to 87%
- Save time and reduce operating costs
CAARS Collateral Management System Features
Core Features
- Automated Internal and Broker Collateral Holding Reconciliation
- Realtime Collateral Inventory Tracking
- Instant Margin Communication with Backup Documentation
Other Features
- Consolidated Collateral Agreement Management
- Centralized view of daily margin calls across brokers and products including ISDA, Centrally Cleared, Futures, Repos, and Long and Short Prime Brokers
- Automatic capture of broker statements and internal client data
- Determination of eligible positions based on client determined rules
- Daily reevaluation of collateral positions
- Initial margin models
- Automatic generation of collateral movements
- Custom workflows
- Various reconciliation views and functionality
- Unlimited number of reports and extracts
Download the Brochure
Read the brochure to learn more.