State Street launches tri-party service on Collateral+ platform
27 September 2021 US
Image: State Street/Staffan Ahlner
State Street has announced the addition of State Street Triparty to its Collateral+ platform, in line with the strategic expansion of its collateral management programme.
This release aligns with the announcement that Staffan Ahlner, State Street鈥檚 head of Collateral+, made to SFT in its collateral symposium on 3 March.
In that forum he said that State Street will be adding tri-party services to its Collateral+ suite in time for UMR collateral posting, helping buy-side firms to optimise collateral usage and efficiency when posting margin to meet UMR initial and variation margin commitments.
The tri-party service allows clients to post and receive UMR collateral utilising assets held in custody with, or passed to, State Street.
The Boston-based firm says that tri-party functions for securities lending and repurchase agreement (repo) transactions will follow in the near future, alongside support for peer-to-peer trading.
Speaking to SFT, Ahlner explains: 鈥淭he tri-party collateral service release comes on the back of a period of extensive testing with clients 鈥� and further testing is currently ongoing with buy-side and sell-side firms in preparation for extending this service for securities lending, repo trades and for peer-to-peer transactions that are expected to go live before the end of 2021.鈥�
The initial strategy has focused on rolling out the tri-party service to support buy-side clients in adapting to Phase 5 of UMR, which was enacted on 1 September. 鈥淲ith this release, State Street will bring a wide range of post-trade tools to market, available via the Collateral+ platform, particularly assisting buy-side firms in meeting their requirement for margin management and collateral optimisation," says Ahlner.
On the funding side, this will also help mid-sized banks to manage collateral more efficiently in meeting their requirement for liquidity through secured financing transactions.
鈥淓fficient collateral management is essential for our clients and prospects, not simply from a regulatory perspective but also from a liquidity planning and risk management standpoint,鈥� says Ahlner.
鈥淲ith UMR being a mandatory requirement, this has provided an opportunity for many firms to revisit their collateral strategy looking holistically across the organisation 鈥� taking the opportunity to minimise collateral fragmentation across product silos and geographical locations.鈥�
鈥淪tate Street has taken the approach of partnering with technology firms and this has enabled us to develop a wide array of pre-trade and post-trade tools, while minimising our time to market,鈥� says Ahlner.
鈥淭his provides exciting opportunities for empowering the buy-side, for delivering powerful analytical tools and bringing major efficiency gains to collateral mobilisation and allocation,鈥� he concludes.
This release aligns with the announcement that Staffan Ahlner, State Street鈥檚 head of Collateral+, made to SFT in its collateral symposium on 3 March.
In that forum he said that State Street will be adding tri-party services to its Collateral+ suite in time for UMR collateral posting, helping buy-side firms to optimise collateral usage and efficiency when posting margin to meet UMR initial and variation margin commitments.
The tri-party service allows clients to post and receive UMR collateral utilising assets held in custody with, or passed to, State Street.
The Boston-based firm says that tri-party functions for securities lending and repurchase agreement (repo) transactions will follow in the near future, alongside support for peer-to-peer trading.
Speaking to SFT, Ahlner explains: 鈥淭he tri-party collateral service release comes on the back of a period of extensive testing with clients 鈥� and further testing is currently ongoing with buy-side and sell-side firms in preparation for extending this service for securities lending, repo trades and for peer-to-peer transactions that are expected to go live before the end of 2021.鈥�
The initial strategy has focused on rolling out the tri-party service to support buy-side clients in adapting to Phase 5 of UMR, which was enacted on 1 September. 鈥淲ith this release, State Street will bring a wide range of post-trade tools to market, available via the Collateral+ platform, particularly assisting buy-side firms in meeting their requirement for margin management and collateral optimisation," says Ahlner.
On the funding side, this will also help mid-sized banks to manage collateral more efficiently in meeting their requirement for liquidity through secured financing transactions.
鈥淓fficient collateral management is essential for our clients and prospects, not simply from a regulatory perspective but also from a liquidity planning and risk management standpoint,鈥� says Ahlner.
鈥淲ith UMR being a mandatory requirement, this has provided an opportunity for many firms to revisit their collateral strategy looking holistically across the organisation 鈥� taking the opportunity to minimise collateral fragmentation across product silos and geographical locations.鈥�
鈥淪tate Street has taken the approach of partnering with technology firms and this has enabled us to develop a wide array of pre-trade and post-trade tools, while minimising our time to market,鈥� says Ahlner.
鈥淭his provides exciting opportunities for empowering the buy-side, for delivering powerful analytical tools and bringing major efficiency gains to collateral mobilisation and allocation,鈥� he concludes.
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