NEX TriOptima won the “Best Collateral Management Solution,” and Jenny Nilsson, product marketing executive for triResolve, answers questions from FTF News on the state of collateral management.
(Editor’s note: As regulatory reforms regarding collateral take hold at financial services firms, there have been challenges for firms to access enough eligible collateral to meet margining and related requirements. While the regulatory reforms are intended to lower risk and facilitate optimal execution, the situation has become much more complicated. In addition, collateral management has become an enterprise-wide concern with input from front-, middle- and back-office personnel. The award for collateral management via the 2017 FTF Technology Innovation Awards honors the provider that has put forth innovations to cut the risks and costs associated with interconnected collateral management, margining and clearing. Voters in the awards competition selected NEX TriOptima as the “Best Collateral Management Solution,” and Jenny Nilsson, product marketing executive for triResolve, answered questions from FTF News about the state of collateral management.)
Q: Were there any collateral management trends in 2016 that helped with product development and client services?
A: Standardization as a result of regulation has paved the way for us to develop a fully automated STP [straight through processing] collateral management service.
We have seen an increased need for automation and triResolve Margin is an exception-based solution, which enables our clients to focus their resources on risk and compliance.
Q: Looking ahead, what does TriOptima view as the top collateral management concerns for most firms?
A: Fragmentation of portfolios and increased margin call volume is likely to lead to increased scrutiny of disputes.
Integrated and robust dispute resolutions need to be put in place across the industry participants to make the markets safer.
Q: What are the key traits clients should look for when choosing a collateral management provider?
A: Firms should look for a cost-efficient and easy-to-implement solution that requires no installation or maintenance.
A solution that removes manual processes and has embedded dispute analytics and break workflows, which means firms can resolve disputes with their counterparties quickly and efficiently.
We believe that by bringing processes together and focusing on exceptions through automation, firms are able to direct resources where it matters – on risk and compliance.
Q: How would you describe the business philosophy for TriOptima?
A: TriOptima sits within NEX Optimisation, a group of like-minded businesses which aim to simplify our clients’ workflow and help them optimize their resources.
We believe in listening — to our inspirations, to our colleagues, to our clients, and to the markets — in order to deliver simple but never static solutions to market challenges.
We are always evolving with our clients and anticipating what the next important goal will be. Our work is exciting, fun and very demanding, which means we always strive to lead the market.