Transcend Increases Members’ Efficiency with Collateral Optimization

by | Oct 21, 2021 | Collateral Optimization, News, Press Release

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NEW YORK, October 21, 2021 – Transcend, a leading provider of analytics, optimization, and automation for collateral, liquidity, and funding continues to enhance its CCP Central solution by expanding its network for CCP margin optimization. CCP Central, which streamlines collateral management activities with a single CCP or across a global network of CCPs, now offers its clients functionality related to collateral automation and optimization at the Options Clearing Corporation (OCC). In addition to automating the process of posting collateral to OCC, Transcend can now help its clients more efficiently meet margin requirements through advanced optimization capabilities.

“The OCC margin methodology is unique in that collateral pledged by members is assessed against their clearing positions,” said Patrick Tessier, Derivatives Product Manager at Transcend. “As a result, the collateral selected has the potential to increase or decrease a member’s overall risk and therefore margins. Nevertheless, most firms lack the technology to optimally select and pledge the collateral to meet their margin requirement. CCP Central is changing this narrative, enabling customers to seamlessly pledge the most optimal collateral.” 

Transcend’s functionality and optimization capabilities empower firms to systematically identify and execute the securities movements that satisfy their margin requirement. Ultimately, this helps firms reserve scarce collateral resources and improve liquidity while driving enhanced operational efficiency.

“Collateral optimization has become a critical component of the CCP business model,” said Bimal Kadikar, CEO of Transcend. “With CCP Central’s powerful optimization capabilities, we are delivering both operational and financial leverage to our clients, resulting in millions of dollars in annualized savings.” 

Transcend is investing heavily in people, research and development to build the industry’s most innovative collateral and inventory solutions.  CCP Central launched in May 2021 as the industry’s first platform to deliver functionality and enterprise-wide margin and collateral management to its clients that are members at standalone CCPs or across a global network of CCPs.

ABOUT TRANSCEND  Transcend is a leading provider of optimization solutions for collateralized businesses. With a growing roster of world-class banks and other financial institutions as clients, the firm is quickly becoming the gold standard for the real-time, firm-wide management of inventory, funding and liquidity. With more than 120 employees globally, Transcend addresses an array of regulatory and capital challenges that are facing the industry with a user-friendly, SaaS-based or on-prem collateral and liquidity management platform. For more information, visit transcendstreet.com.

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