Ahead of the roll-out of UMR phase six this week, SIX has launched a new triparty collateral management (TCM) solution to help clients reduce operational risks and costs.
Users of the service will be able to delegate their day-to-day operational collateralisation responsibilities to SIX, ensuring the correct amount of margin is being posted and that risks are managed.
The SIX triparty agent performs tasks such as the selection and automatic execution of collateral transfers and ongoing validation that exposures are being appropriately collateralised through daily mark-to-market checks on the collateral throughout the transaction.
Nerin Demir, head, repo and collateral management at SIX, said: “With this solution combined with our sophisticated Collateral Cockpit we provide a higher level of security, control and useability for our clients. In addition we established the backbone for collateral mobilisation, enabling many new use cases for our collateral management service and a foundation for future growth.”
Christian Geiger, head, sales, repo and collateral management at SIX, added: “Tri-party collateral arrangements are especially important for the Uncleared Margin Rules (UMR). SIX has seen an increasing client demand with the final phase of UMR coming into force this September.”