SmartStream Technologies has acquired IBM’s Algorithmics Collateral Solution, including all of its assets related to software, sales and support.
The acquisition will add to SmartStream’s existing suite of solutions, helping financial firms to automate their end-to-end post-trade lifecycle, reducing the costs and levels of risk involved.
The Algorithmics Collateral Solution, which will be rebranded TLM Collateral Management, offers collateral lifecycle automation for buy- and sell-side institutions, custodians and asset servicing firms of all sizes.
SmartStream has predicted that its clients will see increased value for post-trade processing through the integration of collateral management with SmartStream’s operational risk control framework.
IMB purchased Algorithmics in 2011 for $387 million, acquiring its risk and analytics software and content advisory services, as well as the collateral solution.
SmartStream has acquired only Algorithm’s collateral product from IBM. This includes solutions for cash and intraday liquidity management, corporate actions, reconciliations, data management and exception management.
Philippe Chambadal, CEO of SmartStream, said: “This acquisition marks another significant step for the company and our customers. Funding and counterparty risk management have a critical focus for our customers, who will now be able to leverage the integration of TLM Collateral Management with our leading cash and liquidity management solutions to give a clear picture of a firm’s exposure.”
“This will give them the unique ability to mitigate counterparty risk and to respond to market changes in real-time. The solution gives a complete picture across the front-and back-office and a centralised view of a firm’s inventory and exposure, enabling greater transparency of funding and collateral needs – which ultimately underpins trading.”
