Pirum provide a suite of solutions that benefit both the front and back office of financial institutions. As global leaders in Securities Financing automation we have been addressing the matters that make the most impact on your transparency, workflow and costs for over 15 years. Below is a list of area specific questions and answers that will help determine the suitability of Pirum to your organisation.
Select your area of interest:
Automation is paramount in the securities finance industry – In particular having the ability on a Real Time basis to identify, assess and resolve issues can have a direct impact on Balance Sheet and capital costs. Transparency on collateral calculations posted either Bilaterally or to a Tri Party can avoid costly charges to unsecured overnight exposure – Pirum’s Collateral exposure products can help identify these risks.
Pirum are keeping a close eye on how the Securities Financing Transaction Regulation (SFTR) will impact the industry. Find out more by selecting SFTR from the Menu tab, where we will be providing regular updates as to how Pirum can help in this space, as more is released by the regulators.
The automation that Pirum provides its clients directly affects the speed at which collateral, billing, corporate actions and manufactured dividends can be agreed and paid. When you add on the potential savings from operational risk mitigation, for example the cost of breaks and fails - Pirum can positively affect your bottom line.
Regular and timely reconciliation of positions ensures accurate P&L accruals throughout the month and reduces intra-month P&L swings. Pirum has the ability to reconcile on a real time basis which can assist in managing this volatility
Pirum’s real time Pending Match enables firms to pre-match and settle trades quicker thus minimising the fails and avoiding costly fines. This works for both new loans, partial returns and full returns.
Pirum’s CCP gateway service enables its customers to clear bilaterally agreed stock lending trades via a CCP. Our existing real-time clients have a head-start on CCP integration since we have reused all the existing real-time links to make the process of moving to CCP a relatively simple one. For new customers, our flexible systems integration process will ensure that we get you up and running in no time.
Pirum have been offering RQV automation to the market since 2012. By utilising real time price FX and position files from various systems, we can show to your users where your exposures lie in a real-time manner. This allows you to follow your triparty required values (RQV) through to collateral triparty vendors. We can also help you reconcile your cash collateral pre-pays, and ensure that your trades are marked to market daily.
Pirum’s intuitive website receives great reviews from our clients with regards to how easy and self-explanatory the screens are. Training requirements on new users is minimal, and can be done remotely or onsite. We continually look to improve our website, and build new functionalities to make our clients jobs easier.
Pirum’s real-time service includes a highly efficient returns automation module. As soon as a borrower books a return, we check the lender pre-defined configuration and if the return meets those criteria it will be automatically flow through to the lender’s system. We deal with cleaning up small positions, and auto split returns as required. In summary – Pirum can help you significantly to improve your returns process flow.
The integration of Pirum with Data Providers means that you can receive enhanced coverage and timeliness of valuable Securities Lending market data information. You control how much of your data to send on, and there is no additional technology work required if you're already integrated with Pirum.
Pirum provides a flexible reconciliation service that is tailored to the needs of its individual clients. During our integration process we will identify the relevant industry fields in your files, and create mapping such that we can compare them to your clients that are also using our services. Our attention to detail will ensure that your staff will be able to immediately focus in on breaking trade attributes that impact your business the most, ensuring that you get great value for money.
Pirum is already integrated with a wide variety of securities lending trading systems, such as Global One, 4Sight, and Loanet. For those companies with their own technologies, we provide customised solutions to help onboarding be as simple a task as possible - no rigid file formats to code to with Pirum. In addition, each integration is assigned their own Pirum team member as a point of contact, who will help contribute to a seamless integration.
Pirum is uniquely positioned in the market to provide true real-time services. Some of the largest time savers can be found amongst our real-time services, such as mark to market automation, the automated returns services, and the ability to instruct on RQVs direct to triparty. Our clients have seen significant benefits in terms of time and cost savings as well as operational risk mitigation – you could be benefitting from these too!
In short – a lot. We have been providing mark to market services for cash and non-cash trades for many years, which ensure that your books are priced correctly and P&L accruing correctly. Pirum linked up with JP Morgan Tri Party in 2012, BNY Mellon Tri Party in 2013, and Euroclear Tri Party in 2016 such that Pirum can value your books and also send all the instructions directly to triparty for you. This has provided huge time savings for agent lenders with multiple RQVs, and also to those borrowers trading with them.
Managers have access to a variety of statistics, which can be accessed directly from our website. This allows our users to look across all of their reconciliations to find trends which can lead to the resolving of problems at their root cause. Also, most of our clients sign up to our peer ranking statistics, which allows them to compare how they are faring with breaks versus a list of anonymised similar companies.
Pirum was founded in 2000 and since then have been heavily involved in helping shape how technology can benefit the securities lending industry. Our ability to innovate and to build great client relationships has ensured that we continue to be at the forefront of advances in our industry – the latest example of this has been our work to develop a Hub for the securities lending CCP product.
This real-time module has been built for our lending client base. The lender sets their prioritisation logic in advance, then utilising the files coming from Tri Party agents and from your system, we are able to determine if a new loan is fully collateralised. Once it is, Pirum can send a message to your system to release the trade the market, fully automating the process.
A central counterparty (CCP) allows market participants to trade with reduced capital requirements, as well as providing operational efficiency through near full automation of the securities lending lifecycle. Pirum takes trades from borrower and lender and then novates them to a CCP such as Eurex after matching up all the trade attributes – this match ensures that all ongoing events are processed STP until the trade eventually closes out.
Our product is truly global, taking into account both international and US domestic securities lending. Our clients are based all over North America, Europe and Asia. With our market knowledge and flexible configurations, we are comfortable that we can meet your requirements.
Pirum are constantly working with their diverse client base to provide solutions for challenges utilising a combination of the flexibility of its reconciliation products, the deep market knowledge of its staff, and its desire to innovate. Our support line and client services teams are dedicated to helping our clients to meet their objectives, so simply reach out to us.
Send us your question and our experts will endeavour to get back to you as soon as possible.