Collateral Validation Service

Systematically Validate & Test Colateral Sufficiency 

Ensure that Collateral Received Complies with Your Schedules and Policies

 

An effective counterparty risk management strategy includes a process to proactively validate whether received collateral satisfies terms and internal policies. However, without the right tools this can be extremely difficult. A scalable system is required to not only link collateral to schedules but also identify the reasons behind the breaks. 

Transcend’s Collateral Validation Service harmonizes collateral, obligations, eligibility schedules and reference data to automatically verify that pledged collateral satisfy business and legal terms. The service also enables you to clearly identify and address breaks before they create financial risks for your firm or your clients.

 

  • Increase operational efficiency by eliminating manual processes and errors when seeking and analyzing agreements
  • Drive greater transparency for Risk, Operations, and Treasury teams with one holistic view for collateral validation efforts across tri-party, third-party and bi-lateral activities
  • Eliminate allocation errors and reduce broker and client risk by proactively resolving collateral eligibility or sufficiency exceptions
Collateral Validation Service

AGREEMENT HARMONIZATION

Digitize and consolidate agreement terms across disparate collateral ecosystems including tri-party, bi-lateral, ISDA margin, CCP/FMU, SBL and more.

SCENARIO MODELING

Configure and execute validation scenarios to review your entire global portfolio or a particular subset along with what-if scenarios.

REAL-TIME VALIDATION

Confirm collateral eligibility in real-time to not only assess funding capacity but also enforce compliance with ESG policies, and client instructions.

BESPOKE DASHBOARDS

Utilize flexible exception-based screens to monitor for eligibility, sufficiency or concentration issues, and investigate exception drivers.

PROACTIVE RISK MITIGATION

See the breaks with common sense reason codes to identify and resolve any issues before allocation errors are reported.

Ready to mitigate counterparty risk proactively and efficiently

Request a demo today to learn how Transcend’s Collateral Validation service can help.