Generating Capital Markets Impact
The supply of prime collateral is finite, and financial firms have to ensure the reliability of their liquidity and funding capacity by making optimum use of their collateral supply chain. Firms must manage changing margin and collateral eligibility rules, as well as the counter-party documentation and agreement changes that affect margin and collateral. Add to this the need to manage collateral across multiple counter parties, settlement systems, exchanges, and clearing venues with diverse margin and collateral requirements, and the need for a collateral optimization strategy is clear.
Genpact's Collateral Management Services design, transform, and run day-to-day margin and collateral processing operations in a lean, efficient, and cost-effective way, and enables customers to better grow revenues and profits.
Our service portfolio includes:
Collateral Agreement Reference Data Services (CARDS)
Genpact's Collateral Agreement and Reference Data Services (CARDS), builds and maintains customers' essential margin and collateral rule book. CARDS enable customers to automatically digitize and capture the terms and conditions of various collateral agreements across asset classes and counter-party types. By eliminating manual data entry, CARDS helps in improving efficiency and mitigating operational risks.
Digitization of collateral agreements through CARDS accelerates agreement on-boarding and helps in extraction of the margin and collateral rules and conversion to on-demand reference data. CARDS also enables continuous updating of reference data based upon changes to counter parties, CCP margin models, and collateral eligibility rules.
Collateral Management as a Service (CMaaS)
We achieve a centralized collateral inventory system, the just-in-time supply chain management process for collateral assets, in partnership with Lombard Risk and COLLINE – the leading provider of collateral management platform technology. Our partnership incorporates CARDS at the front end, calculates exposure and margin requirements, issues and processes margin calls, and moves the operational processes to reconciliation. COLLINE has the newest collateral optimization engine in the industry, and the platform with CARDS enables the sophisticated rule-driven optimization required for allocations of collateral assets.
CMaaS is much more than a robust end-to-end collateral management and optimization platform. CMaaS takes the technology platform and provides an efficient, agile and cost effective operating model. It also brings operational scale with Genpact providing the daily margin and collateral processing operations required to support escalating processing volumes.
Business Advisory Services
Our advisory services provide clients a complete analysis of their current state by evaluating their processes and systems by using our proprietary Smart Enterprise Processes (SEPSM) framework and Intelligent OperationsSM, which benefit from a continuous improvement cycle leveraging years of deep Capital Markets experience.
CMaaS takes a robust end-to-end collateral management technology platform and combines it with a new operating model that converts fixed costs into variable costs and enables banks to scale for 5 to 10x greater margin call volumes. CMaaS also improves risk and compliance by providing a “single source of truth" when it comes to agreement data and automates agreement digitization to further reduce costs.