COVID could lead to fungible margin model – Panel

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Highlights from the ISF-ISLA Securities Finance webinar series

On July 9, 2020, Bimal Kadikar, CEO of Transcend, spoke on the ISF-ISLA panel discussion on “COVID-19 & Chain Reactions: The Transmission of Effects Across Markets & Institutions.” The group discussed what has been expected and unexpected during the health crisis. And based on lessons learned what changes can be expected from business, operations and technology perspectives?

“Firms struggled to get a clear picture of their #collateral and margin exposures during the most volatile months of the crisis…We expect this to bring more focus to centrally coordinated collateralised businesses and operations.”

– Bimal Kadikar, CEO, Transcend

Panel participants were:

  • Mark Faulkner, Co-Founder, Credit Benchmark – Moderator
  • Nigel de Jong, Head of Sales and Relationship Management, RepoClear, LCH
  • Bimal Kadikar, Founder and CEO, Transcend
  • James Templeman, Global Head of SL Trading, BlackRock
  • Simon Sourigon, ED, Head of Global Securities Financing Americas, Natixis

Read more in the Global Investor article recapping the discussion.

In collateral management, no news is very good news

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The collateral management industry deserves congratulations for making almost no noise over the last few months. Nothing grabs headlines like a disaster, but the mainstream press has been remarkably quiet about collateral management functioning. Here’s what vendors, custodians, outsourcing managers and central securities depositories told Finadium on this topic for their new report, “The Impact of COVID-19 on Collateral Management.”

“The crisis is reinforcing our value proposition: clients are asking for more STP; more connected data; more scalable infrastructure; and reduced reliance on legacy systems.”

– BJ Marcoullier, Head of Sales, Transcend

The Next Level in Building Data-Driven Operational Efficiency

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The next level of operational efficiency will incorporate a deep view of connected data within organizations that will yield better efficiencies and optimization of capital through firm-wide decision making. Taking automated action on those decisions for Straight-through Processing will enable firms to achieve the desired efficiencies in a scalable manner. Getting there has its challenges, however. In this article we look at why many in the industry are embarking on this more sophisticated approach to operational efficiency, and identify three key strategies for ensuring success. A guest post from Transcend, originally published in Securities Finance Monitor. Read more

US regulation could leave firms “scrambling”

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A US regime that a large number of global market participants are starting to fully assess could leave firms crunched for time to implement a comprehensive end-to-end solution, according to BJ Marcoullier, Transcend’s head of sales.

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Transcend Hires Former Managing Director of CloudMargin

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Lis Hadingham to help drive the Company’s growth and expansion

NEW YORK, NY (February 10, 2020) – Transcend, a leading provider of real-time collateral and liquidity optimization technology, has hired Lis Hadingham to join Transcend’s sales team, led by BJ Marcoullier. Hadingham brings more than 20 years of experience in the securities finance industry, with extensive background in collateral management and financial technology sales. Her start coincides with an accelerating pipeline of opportunities for Transcend, whose solutions are currently implemented at major banks, including GSIBs. Read more

As Transcend’s Business Grows, So Has Our India Team and Office

Our CEO Bimal Kadikar joined our team in India to open a larger office in Hyderabad. We have expanded our team’s talent and capabilities significantly across all functions – analysis, development, QA & support. This bigger, brighter space creates a very collaborative environment and will support our ambitious growth plans.

2020 Outlook: Bimal Kadikar, Transcend Street Solutions

What were the key themes for your business in 2019?

At Transcend, we have seen a growing shift in the industry towards firm-wide optimization of collateral, liquidity and funding. Our clients’ goals are to manage their capital more effectively and drive efficiencies across the enterprise, and that requires a coordinated, integrated and automated approach across siloed business lines, systems and processes. It is no small task to connect and harmonize vast sets of data related to collateral – such as agreements, positions and trades – and various workflows, but the returns are quickly realized. The good news is that firms can pursue their optimization strategy widely, or they can choose to focus on a priority area of their business and scale from there.

What are your expectations for 2020?

In 2020, we expect a continued increase in complexity and bottom-line pressures. Firms need to provide differentiated, competitive services to drive profitability, despite potentially operating with legacy technology and processes. Plus, they face growing reporting requirements and regulatory pressures (such as QFC Recordkeeping and SFTR). This is leading more firms to the realization of the need – and benefits – to undertake a centralized optimization strategy to help overcome multiple challenges through a singular solution.

What trends are getting underway that people may not know about but will be important?

Everyone understands that automation in the funding and collateral space is occurring at a fast pace. At Transcend, we believe that in five years, as much as 90% of funding will be done by machines. But what is not fully in focus is that connecting data from disparate sources is the key to this next evolution in the funding markets. Today, most data is fragmented across a firm. To be effective, data needs to flow from the original sources and be readable by each system in a fully automated way. Thus, harmonizing and connecting data needs to be every firm’s priority in order to achieve automation and optimization.

This article was originally published on Markets Media.

A Connected Collateral Ecosystem

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Recent advances in collateral management technology – from algorithms to advanced analytics – are revolutionising the opportunities available to firms seeking optimisation at an enterprise-wide level.

Firms are increasingly realising the advantages of adopting a more centralised and harmonised approach to managing collateral, and utilising the latest software solutions to inform decision-making. Bimal Kadikar, CEO at Transcend, says: “Forward-looking firms have recognised that optimising collateral and liquidity across an enterprise, as well as within business areas, can drive efficiencies and deliver wider strategic benefits.” Read more

Connected Data: The Opportunity for Collateral and Liquidity Optimization

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The function and definition of collateral and liquidity optimization has continued to expand from its roots in the early 2000s. Practitioners must now consider the application of connected data on security holders to operationalize the next level of efficiency in balance sheet management. A guest post from Transcend. Read more

Finadium report on ISDA’s Common Domain Model and the Digitization of Collateral

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Finadium recently spoke to Bimal Kadikar, CEO of Transcend, regarding the adoption of ISDA’s Common Domain Model (CDM) by market participants. Finadium’s new report, published by Josh Galper, Managing Principal, evaluates the role of CDM to solve business problems for collateralized trading markets and its potential to standardize data elements across the derivatives lifecycle. Bimal commented on the pace of industry adoption:

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