Market Volatility, Inflation, Rising Interest Rates Drive Firms to Centralise Assets, Optimise Collateral
LONDON / BOCA RATON, Fla., 15 March 2023 – CloudMargin, creator of the world’s first and only collateral and margin management solution native to the cloud, today announced that the firm will report a record year in revenue and client growth for the firm’s fiscal year ending 31 March. The Software-as-a-Service company has continued adding to its roster new clients interested in managing their collateral for cleared over-the-counter (OTC) products and exchange-traded derivatives (ETDs), in addition to its longstanding work with clients on uncleared OTC, repo and Stock Borrowing and Lending (SBL) products.
CloudMargin CEO Stuart Connolly said: “The challenging environment of market volatility, inflation and rising interest rates has put a strain on collateral teams at buy- and sell-side firms of all sizes. We’re seeing considerable inbound interest from firms recognising they can use our platform to centralise all assets and data – and because of that, truly optimise their collateral usage, enabling them to drive down funding costs and address collateral scarcity. Recent enhancements to our optimisation functionality give clients the tools they need to make smart decisions fast and put their collateral to work in the most efficient way possible. This capability, along with our unmatched automation and continuous platform enhancements, can result in immense savings, along with better-informed trading decisions, for institutions.”
After several consecutive high-growth years, CloudMargin’s subscription growth for the fiscal year totaled nearly 40%, with significant client growth in particular among asset managers globally. Rising interest rates are increasing funding costs, and with CloudMargin, these firms can now manage multiple asset classes and use the platform to optimise their use of collateral firmwide. Many clients have reported cost savings of up to 70%.
Through the CloudMargin platform’s microservices architecture, services expand and contract automatically by load, ensuring stability irrespective of how much volatility there is in the market. The platform facilitates exception-based straight-through processing by centralising data; providing a consolidated view of obligations, inventory and associated eligibility to meet collateral obligations; connecting to a wide range of industry utilities; and optimising collateral allocation and funding firm-wide.
For the calendar year ending December 31, CloudMargin’s platform saw $1.5 trillion exchanges in collateral; helped clients with more than 800,000 margin calls; managed more than $750 billion in daily inventory loaded on the platform; was accessed by clients in more than 50 countries; and introduced nearly 900 enhancements to features and functionality.
About CloudMargin
Headquartered in London, CloudMargin created the world’s first cloud-based collateral management workflow tool, which has earned more than 25 industry awards and honours since 2015 for innovation and best-in-class technology. The firm’s Software-as-a-Service (SaaS) model helps leading sell-side and buy-side financial institutions globally – including banks, brokerage and asset management firms, pension funds and insurance companies meet time-critical regulatory deadlines and reduce dramatically growing costs associated with collateral requirements. CloudMargin delivers its robust, secure platform directly as well as through outsourcers and major industry service providers. Partner to and owned by the market, CloudMargin’s strategic investors include Deutsche Bank, Citi, Deutsche Börse, IHS Markit and Jefferies, as well as venture capital firm Illuminate Financial. CloudMargin was the first collateral management solution provider to be a member of the SWIFT network, facilitating straight-through processing through settlement. For more information, visit www.cloudmargin.com.
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