Northern Trust has launched an enhanced active collateral solution designed to help institutional investors manage their collateral more efficiently while meeting the demands of continual market change.
The capability, delivered in collaboration with CloudMargin, a global collateral management technology company, will provide enhanced service capabilities, increased transparency on a real-time basis and platform resiliency.
This includes automated asset selection based on flexible hierarchies, support of complex eligibility rules, access to real-time data through client portals, report write capabilities, and full end-to-end automation.
Nadia Ivanova, Head of Business Services, Northern Trust Asset Servicing, said: “Our clients must be strategic and nimble in managing their investment portfolios, including collateral management, to optimize asset deployment and minimize performance drag.”
“Our advanced, digitized solutions can help clients achieve this objective – minimizing the value of assets that need to be tied up as collateral and managing counterparty exposure effectively. This showcases our technology vision in action, delivering the agility, resilience, automation, and long-term value our clients require.”
CloudMargin is the world’s first cloud-native collateral management workflow solution, combining market-leading process automation with flexible, real-time analytics and controls.
More than 225 buy-side and sell-side institutions across the globe rely on CloudMargin to increase control, transparency and resilience of their operations through automated, end-to-end collateral management processes.
Barney Binder, Head of Collateral Management, Northern Trust Asset Servicing, said: “These advanced capabilities are part of Northern Trust’s comprehensive range of collateral, derivatives and liquidity management solutions. Clients can access these services globally, either on a component basis – to complement their current in-house practices – or as part of a broader suite of collateral management solutions.”
CloudMargin CEO Stuart Connolly said: “CloudMargin’s purpose-built collateral platform is continuously updated, enhanced and maintained. Northern Trust clients will benefit from full automation in their collateral workflow, and unprecedented levels of transparency. We are incredibly honoured that Northern Trust selected CloudMargin for this mission-critical service after a comprehensive review of the marketplace and rigorous due diligence process. The collaboration is another important milestone in our continued growth trajectory in our 10th anniversary year.”
