Transcend Overview

Summary

The Options Clearing Corporation (OCC) has created an opportunity for clearing members to reduce their overall margin requirement through a risk-based haircut methodology. Nevertheless, most firms lack the technology and resources to efficiently identify the securities that satisfy the OCC margin requirement at the lowest market value. Transcend’s end-to-end OCC Optimization directly integrates your collateral inventory with the OCC to seamlessly pledge securities that minimize your margin obligation.

Collateral Validation

Summary

Spurred by Uncleared Margin Rules, a global Broker-Dealer needed to analyze digitized agreements terms, perform what-if scenarios and proactively monitor exceptions. Additionally, they required a solution that would integrate easily with legacy systems and processes, yet quickly deliver results and ROI.

As a result, the firm selected Transcend’s Collateral Validation solution to solve their greatest challenges. With Transcend, the firm automated collateral eligibility, sufficiency & concentration limit validation for all counterparty collateral across business areas. As a result, the firm achieved better counterparty exposure management and overall risk reduction in addition to:

  • Improved compliance
  • Increased operational efficiencies
  • Better client service
  • Tight exposure management
  • Global business coordination

Tri-party Optimization

Summary

A global Broker-Dealer was faced with two key business challenges. Firstly, they needed to optimize their fixed income collateral for tri-party trades. Secondly, they wanted to automatically check pre-trade collateral eligibility. Ultimately, the firm selected Transcend to implement an automated tri-party optimization strategy to satisfy these challenges.

The business was able to save hundreds of millions of dollars in unsecured funding usage through Transcend’s automated optimal collateral allocations. In addition, Transcend helped the firm realize:

  • Substantial cost savings
  • Increased operational efficiencies
  • Better client experience
  • Reduced business risk
  • Reduced turnaround times for client pricing inquiries

Enterprise Optimization

Summary

A global, US-based bank recognized the opportunity to improve and coordinate collateral management and funding processes across business areas to drive better firm-wide benefits. To increase efficiencies, and reduce funding costs and compliance risk, the firm pursued centralized funding and collateral optimization strategy. To realize these strategic goals, they turned to the modular solutions and expertise from Transcend. The Transcend solution empowered the entire team, from front-to-back and across businesses, with advanced capabilities, including:

  • Substantially reducing overall collateral funding costs
  • Managing the firm’s securities assets and algorithm-driven workflows in ONE place
  • Tracking collateral sources against uses to coordinate funding decisions, and allocating costs accurately to analyze efficiency of resources
  • Better upgrade/downgrade decisions through Transcend’s “transformation services” to ensure use of the cheapest-to-deliver collateral
  • Streamlining compliant RRP reporting with harmonized data