Financial software firm SS&C Technologies has released a new service which streamlines margining of non-cleared OTC derivatives.

The service, Over the Counter Collateral Optimized (OTCCO), aims to help the buy-side simplify their preparations for upcoming rules requiring OTC derivatives, which are not cleared by a CCP, to be margined. 

Global requirements created by IOSCO and the Basel Committee on Banking Supervision come into force this September and will have significant impact on investment operations.

The new rules demand improved capital adequacy, the implementation of stiff margin requirements, and improvements in the use and optimisation of collateral.

"The road to regulatory compliance for the margining of non-cleared OTC derivatives will be disruptive to the investment management industry,” said Tom Kirkpatrick, managing director, SS&C GlobeOp.

“Within the disruption lies opportunity, and that is why we are encouraging our customers to engage our collateral management service, OTCCO.

OTCCO works by integrating middle office processes such as real-time collateralised portfolio reconciliation, with collateral management systems to provide an accurate calculation of collateral requirements.

SS&C has also connected its wire processing technology to include settlement instructions to the custodian or prime broker.