Data management systems vendor Aleri says the latest version (5.0) of its liquidity management system (LMS) includes a new collateral management system, which s now in use at Barclays, HSBC and Dexia.
The new collateral management module (CMM) offers views of liquid asset positions for day-to-day and crisis management purposes, and the ability to trigger actions to mobilize them. Additionally, CMM provides detailed stock information for use in liquidity risk reporting and stress testing scenarios.
"With the current liquidity crunch reinforcing the need for banks to implement a real-time liquidity management application to provide a clear, up to date view of the enterprise liquidity positions, we are excited about the launch of our newest LMS release," says Don DeLoach, CEO of Aleri. "LMS provides a system to provide accurate, up to date information to manage the bank's positions, mitigating risk exposures and improving the capability to react effectively to fast changing market conditions."
Many banks are managing liquidity manually on an intraday basis in the middle office, says Aleri, so actual positions of the bank at any given time during the day cannot be readily determined and might not be accurate. "The banks using Aleri's solution are able to see exact positions down to the transaction level and across the bank as well as apply predictive analytics based on historical data," says the company in a statement. "This provides banks with a fast and accurate way to determine how much liquidity they need to borrow if any, ultimately reducing the costs involved. By incorporating an innovative feature like CMM, banks can now get a real-time view of all of their liquid assets in order to be in a position to utilize those assets in the most productive manner. Additionally LMS 5 provides banks with a bird¹s eye view of what institutions are failing to make their payments, allowing banks to make real-time decisions on what to do in order to make a substantial impact. They can also track and identify behaviors that have contributed to the crisis for future reference, facilitating improvements in the bank's Liquidity Contingency processes for the future."