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Collateral Management

Singular solution

Clarity Evolved

Key benefits

A single solution covers the calculation, reconciliation and processing of RQVs across all counterparties (whether users of Pirum or not) and tri-party agents

Lenders

  • Fast, accurate, automated and secure online submission of RQVs – no more need for e-mails / faxes
  • Improved control around RQV calculation – processing errors are less likely to go unnoticed
  • Easier to send intra-day RQVs –
  • Less manual effort
  • Easier dispute resolution with borrowers

Borrowers

  • Greater intra-day visibility of lender figures
  • Exception based process to monitor / agree / match lender RQVs
  • Variances from Lender figures are automatically identified and broken down, preventing time consuming / impractical tick-backs
  • Window for dispute resolution expanded

Tri-Party Agents

  • Earlier submission and accuracy of automated RQV feed reduces demands on tri-party operations staff
  • Greater client satisfaction due to increased automation, visibility and agreement of RQVs
  • Pirum is live with BNY Mellon, JP Morgan and Euroclear triparties

Investment banks / Asset Managers / Pension Funds / Insurance Companies / Agent Lenders

Overview

Pirum’s Collateral Management Service offers a single solution covering the calculation, agreement, and submission of daily triparty required values (RQVs) to triparty agents across all counterparties.

Daily RQVs for securities lending portfolios are calculated by Pirum using a client’s own prices, positions and rules. This service improves the intraday visibility of proposed RQVs, facilitating much simpler and more timely dispute resolution amongst market participants. It also provides a single unified process for operations teams to use when agreeing and communicating RQVs. Pirum receives the latest RQVs from tri-party agents for inclusion in the RQV summary screen. Tri-party agents’ collateral allocation reports facilitate the display of the latest collateralised values and to provide a collateral position reconciliation against the participants own records.


Collateral Management News & Media

Pirum feature collateral management article in Securities Lending Times – September 2017

Pirum article on CollateralConnect in Global Investor Magazine Special – Autumn 2017


How It Works

Fully automated intra-day position updates, end-of-day market prices and FX rates are electronically submitted to Pirum. Using this information Pirum calculates RQV figures at the tri-party account level for each side displaying the results on a secure, intuitive and flexible website. Pirum’s advanced and proven reconciliation platform analyses any differences to determine the root cause of the dispute leading to rapid resolution.

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FeaturePirum Benefits
Real-Time

New trades and returns are automatically sent to Pirum for
immediate inclusion in the calculation of RQVs

Automated submission of RQVs

Fast, accurate, automated and secure online submission of RQVs
to tri-party agents intra-day eliminating manual effort and errors

Improved control around RQV calculation

Flexible and granular rules allow transparent and accurate derivation
of RQVs

Trade/Account level RQV reconciliation

Differences automatically identified and analysed avoiding time
consuming manual tick-backs

Agree and match RQVs

Ability to pre-agree RQV numbers for all tri-party agents