Societe Generale has unveiled Tempo, its collateral management outsourcing system for buy- and sell-side market participants.
The solution is designed to reduce the complexity, operational burden, and costs associated with collateral management for asset managers, institutional investors, banks and major corporates.
The launch comes as a response to new risk management standards and margining regulations for both cleared and uncleared derivatives. In the modern market environment, there is greater need for automation in these processes across the full network of CCPs, counterparties and clearing brokers.
Varying collateral eligibility, concentration and haircut criteria is also increases the need for additional high-quality collateral.
Tempo is designed to address these complexities, helping clients to diversify investment strategies in compliance with changing regulatory requirements. It can also help them to reap the benefits of diversified collateral mass, productivity gains, reduced counterparty and operational risk, and enhanced collateral flexibility.
Clément Phelipeau, product manager for derivatives and collateral management services at Societe Generale Securities Services, said: “As transactions will increasingly need to be collateralised to mitigate market risk, implementing the best possible collateral management strategy will be imperative for both the buy-side and sell-side.”
The new solution draws on SocGen’s securities services business and its multi-asset prome brokerage arm, Societe Generale Prime Services. It is designed to integrate smoothly with existing internal systems and can work alongside SocGen’s prime services clearing solution for OTC derivatives.
Tempo’s agency mode is available for OTC derivatives, exchange traded derivatives, securities lending and repo collateral needs. The solution spans the full collateral lifecycle, including central margining, dispute management, asset pool management, and collateral optimisation and allocation.
Phelipeau added: “Tempo is a unique combination of Societe Generale’s multi-asset collateral management expertise which will help clients make the most of their assets in the coming years.”
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