SmartStream launch eligibility API for quick access to warranty optimization


SmartStream Technologies, financial transaction lifecycle management (TLM)®) solution provider, today announced a new solution, Eligibility API for Collateral Management Optimization – a faster and more efficient way to obtain eligibility information contained in collateral agreements such as CSA, GMRA and OSLA, for optimization of guarantees before and after negotiation.

With the impending implementation of the Uncleared Margin Rules (UMR) Phase 6 regulatory regime in September 2022, margin call volumes are expected to increase and there will inevitably be a compression of pledged assets. This will result in an increase in demand for high quality liquid assets (HQLA). Additionally, with expectations of rising interest rates, firms are considering pre- and post-trade optimization to effectively utilize HQLA and scarce liquidity. With this new solution, SmartStream will provide businesses with a way to publish qualifying collateral for each legal agreement, which can then be consumed by their optimization engines.

To achieve optimization, a key element is the ability to quickly and easily access the eligibility schedules of OTC and repo collateral systems. It is essential to have transparent access to what is eligible and the haircuts applicable to the instruments in all agreements. SmartStream’s new API allows quick and easy access to warranties, including the ability to upgrade seamlessly. In addition, the new solution allows the search for information on eligibility in real time.

Jason Ang, Program Manager, Warranty Management, SmartStream, said, “We realize that the UMR deadline is fast approaching, and we’ve made it easy to deploy our new solution and manage future releases without needing long implementation projects Additionally, having a public API strategy reduces the cost of ownership of the collateral solution Demand for this new API is high and we are having discussions with major banks on how they can use our eligibility to optimize their collateral in preparation for the future”.

SmartStream’s TLM Collateral Management is a comprehensive, automated data management solution that helps financial institutions reduce operational risks associated with collateral management programs. It offers a variety of functions, with coverage for cleared and uncleared margins, OTC derivatives, repo margins and securities lending margins.

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