SmartStream Technologies, the financial transaction lifecycle management specialist, has launched its new TLM cash and liquidity management solution.
Following on from SmartStream’s participation in industry consultation, roundtables, conferences and workshops, it has reacted to the demand and paradigm shifts taking place within the cash and liquidity management operations.
The new software is a strategic tool to enable banks to comply with Basel regulatory compliance for monitoring tools for intraday liquidity management, with the first reporting deadline coming in January 2015.The new solution will enable banks to report on all liquidity and exposures.
Banks have to react to increasing regulatory and operational pressures to actively monitor and manage their intraday liquidity positions and risks for both direct participant and correspondent banking settlement markets. SmartStream said that the new management solution ensures they can meet payment and settlement obligations on a timely basis.
In a statement, the company said: “This is a paradigm shift from end of day focused cash management operations and is required to ensure banks contribute to the smooth functioning of payment and settlement systems, under both normal and stressed conditions, as well as managing their own intraday liquidity risk profiles.”
Nick Noble, product manager of cash management at SmartStream, said: “Correspondent banks are often not able to provide full coverage of movements across financial institutions Nostro accounts. This lack of coverage clouds visibility, causing forecasting errors, which can lead to huge amounts of money being lost due to incorrect funding decisions, and also makes monitoring the Basel Intraday Reporting metrics in real time almost impossible.”
“At SmartStream we believe there should be a duty of care for managing intraday liquidity, this is not just a tick box item, this is going to be a key requirement for 2015.”
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