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 not only changing margin and collateral eligibility rules, but also 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 margin and collateral processing operations in a Lean and efficient way, enabling customers to better grow revenues and profits. Through our global delivery capability we leverage Lean DigitalSM to deliver:
Collateral Agreement and Reference Data Services (CARDS)
Our Collateral Agreement and Reference Data Services (CARDS) build and maintain essential margin and collateral rule books for customers. 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 help improveefficiency and mitigate operational risks. Digitization of collateral agreements through CARDS accelerates agreement on-boarding and helps in the extraction of margin and collateral rules and conversion to on-demand reference data. CARDS also enable continuous updating of reference data based upon changes to counter parties, CCP margin models, and collateral eligibility rules.
Collateral Management as a Service (CMaaS)
CMaaS offers end-to-end collateral management and optimization services. Through CMaaS we offer 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, the collateral optimization engine, with CARDS enables the sophisticated rule-driven optimization that is required for the allocations of collateral assets. 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 necessary to support escalating processing volumes.
Business Advisory Services
Our advisory services provide clients with a complete analysis of their current state by evaluating their processes and systems through our proprietary Smart Enterprise Processes (SEPSM) framework, which benefits 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.