SocGen offers collateral management outsourcing
Societe Generale has launched a new collateral management outsourcing solution, Tempo, which is aimed at both buy- and sell-side participants.
The service aims to reduce the complexity, cost and operational burden of collateral management throughout its process by leveraging its existing strengths in its securities services business, SGSS, and its prime services business.
“As transactions will increasingly need to be collateralised to mitigate market risk, implementing the best possible collateral management strategy will be imperative for both the buy-side and sell-side.” said Clément Phelipeau, product manager, derivatives and collateral management services, at SGSS.
“Tempo is a unique
combination of Societe Generale’s multi-asset collateral management expertise
which will help clients make the most of their assets in the coming years.”
Regulations Emir in Europe and Dodd-Frank in the US have introduced new risk management standards and margining regulations for cleared and uncleared derivatives.
Societe Generale say that collateral will increasingly require sophisticated, automated processes across a large network of counterparties. This will mean institutions will have to make significant investment into adapting their collateral management processes, as well as having to handle the increasing need for high-quality collateral.
Tempo oversees the entire collateral management process, offering central margining for daily margin calls, dispute management, asset pool management and collateral allocation and optimisation.
Societe Generale said the outsourcing solution enables clients to diversify their investment strategies in compliance with evolving regulatory requirements, while benefiting from diversifies collateral mass, productivity gains, reduced counterparty and operational risk and enhanced operational flexibility.
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