Lombard Risk Management, a provider of collateral management, liquidity analysis & regulatory compliance software, and AcadiaSoft are collaborating for electronic collateral messaging.
Using the Lombard Risk REFORM messaging engine, a two-way integration of Lombard Risk COLLINE with AcadiaSoft’s MarginSphere has been achieved to enable collateral messaging.
The company said that the integrated technology of COLLINE and MarginSphere is expected to go into production at two undisclosed Tier 1 European banks.
Many Tier 1 banks, asset managers and fund administrators are currently using its Risk COLLINE product in the collateral management space, claims Lombard.
Apart from covering repos and securities lending and collateral optimization across multiple asset classes, COLLINE covers margin management and related workflow for OTC, cleared and listed derivatives.
Automating the interaction between financial institutions on their margining requirements, the electronic messaging systems provide simplified and scalable operations, increased security, smooth interaction as well as reduced operational risk such as by avoiding double-key entry.
Due to its flexible designing, Lombard Risk’s solution can also be integrated using the same technology with other collateral messaging systems such as internal messaging systems at a bank.