CloudMargin says its network now includes almost 60 custodians as it facilitates UMR readiness

Collateral and margin management specialist has connected with a significant number of custodians given its relative infancy in the space.

CloudMargin has connected to nearly 60 custodian banks globally for cash, securities and third-party SWIFT settlement, as it helps firms prepare for the final phases of Uncleared Margin Rules (UMR).

The cloud-based collateral and margin management solution provider said it is also connected to the four major tri-party agents.

The ascension of the firm has been impressive given its seven-years of existence. In that time, the FinTech has raised $35 million through equity issuance with funding coming in from the likes of Citi, Deutsche Bank and Deutsche Börse.

London-based CloudMargin has been focusing on UMR in recent months as phase five was rolled out for firms that have just fallen under that scope.

“We successfully onboarded a whole host of clients that fell under the scope of Phase 5 onto UMR-ready features to ensure compliance in time for the 1 September deadline that just passed,” said Simon Millington, head of business development at CloudMargin.

“A number of these clients wanted to connect to custodians, and we anticipate this will be a growing trend as we move into Phase 6 that impacts so many more firms. By continually adding custodians to our market-leading network, we’ll help our clients meet the challenges of connecting not only to their third-party custodian of choice but also to those of their counterparties for UMR.

“For banks, in particular, with a large number of in-scope counterparties, this capability can significantly reduce the connectivity burden. For the buy-side there is also significant appeal; they can leverage our triparty connectivity for their bank counterparty relationships.”

Other CloudMargin platform enhancements since the UMR Phase 4 deadline include the rollout of a robust reporting suite that gives firms open access to centralised, structured trade and collateral data, facilitating their ability to meet regulatory reporting requirements and achieve greater credit risk transparency.