10 December 2008
Get the Full Picture with Total Tri-Party
With the launch of Total Tri-Party, Rule Financial unveils a revolutionary product designed to give securities finance professionals the complete global picture of their collateral exposure through the tri-party agents.
The only software of its kind, Rule's Total Tri-Party analyses,collates and displays your collateralpositions,giving visibility across liabilities on a global level and enhancing your ability to manage risk. Using state-of-the-art GUIs, the programme addresses the past, the present and the future at the touch of a key:
THE PAST…with access toafull historicalarchive of prices and positionsTotal Tri-Party can predict trends based on the broadest intelligence gathering…THE PRESENT: real-time reporting on collateral allocation positions worldwide from all tri-party agents, individually or combined… THE FUTURE: a forecasting functionfor enhanced risk management.
THE TRI-PARTY ADVANTAGE
As collateral managers have recentlydiscovered , there are many advantages in a tri-party arrangement: operational efficiency in the front and back offices, intraday margining, the usage of small collateral lines, automatic substitution and reduced credit risk to name some ofthe most obvious, all ofwhich havecontributed to the continued rise of tri-party over bilateral lending.
Drawbacks to tri-party dealing were few but crucial andincluded lack of visibility and inconsistencies in static and market data. Until recently, tri-party agents provided limited reporting of collateral allocations to the principals, but now under Basel II and in current market conditions, counterparties are demanding - and getting - daily or intraday feeds of allocations so they can monitor exact collateral exposures.
As Rule's Head of Securities Finance David Little(right) explains:
“Total Tri-Party has evolved from an obvious gap in the market. After the past 12 months who would wish to find themselves managing collateral allocations and their accompanying risk in a situation where transparency was at a premium? At Rule we've been working in this domain for some considerable time and that specialisation has borne fruit.”