SEI to provide collateral management solution
25 August 2010 Oaks
Image: Shutterstock
SEI has announced that it has expanded its middle office outsourcing services to include collateral management for OTC derivatives, providing its asset manager clients with a more automated, controlled, and independent method by which to manage their counterparty exposure. In the wake of market volatility, managers are looking for a more consistent and transparent process to provide enhanced control over credit risks and actively manage exposure levels, asset utilization, and counterparty risk.
As part of this solution, SEI will perform the daily collateral management functions on behalf of its clients, including managing and electronically storing legal agreements; calculating and communicating calls, recalls, and releases; issue resolution; and calculating and notifying interest on collateral. Additionally, SEI has entered into a strategic partnership with Lombard Risk, one of the world's leading providers of collateral management, to integrate its Colline(R) system into SEI's hedge fund platform. The system features an automated workflow that provides a consolidated view of daily deliverables, facilitates communication, and approvals between SEI and its clients, and improves transparency by tracking assets during the workflow process. Clients can also access a variety of standard and customized reports, including counterparty exposure, interest calculations, collateral positions, and trade positions.
"By relying on SEI, investment managers are able to view and manage their counterparty exposure online without having to invest time and resources in building or buying their own technology solution. Investors value it because it's managed by a trusted independent party," said Phil McCabe, Senior Vice President and Solution Head, SEI's Investment Manager Services division. "Investment managers continue to focus on their core competencies while at the same time strive to improve operational efficiencies, controls and transparency. Outsourcing middle office functions to a company such as SEI achieves what managers are trying to accomplish."
As part of this solution, SEI will perform the daily collateral management functions on behalf of its clients, including managing and electronically storing legal agreements; calculating and communicating calls, recalls, and releases; issue resolution; and calculating and notifying interest on collateral. Additionally, SEI has entered into a strategic partnership with Lombard Risk, one of the world's leading providers of collateral management, to integrate its Colline(R) system into SEI's hedge fund platform. The system features an automated workflow that provides a consolidated view of daily deliverables, facilitates communication, and approvals between SEI and its clients, and improves transparency by tracking assets during the workflow process. Clients can also access a variety of standard and customized reports, including counterparty exposure, interest calculations, collateral positions, and trade positions.
"By relying on SEI, investment managers are able to view and manage their counterparty exposure online without having to invest time and resources in building or buying their own technology solution. Investors value it because it's managed by a trusted independent party," said Phil McCabe, Senior Vice President and Solution Head, SEI's Investment Manager Services division. "Investment managers continue to focus on their core competencies while at the same time strive to improve operational efficiencies, controls and transparency. Outsourcing middle office functions to a company such as SEI achieves what managers are trying to accomplish."
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