State Street is set to launch a triparty collateral service for its buy-side clients ahead of the fifth phase of the Uncleared Margin Rules (UMR) in September.
The US bank is currently onboarding buy-side clients as part of a pilot phase of building the new triparty solution that will complement its established suite of collateral solutions.
Staffan Ahlner, who recently took over as global head of collateral at State Street, is spearheading the initiative and says the triparty product is part of the bank’s strategy to offer an end-to-end service for collateral optimisation and management.
State Street has a pedigree in collateral management going back more than 20 years but this will be the first time it has offered triparty services.
The collateral service is part of State Street’s Funding and Collateral Transformation division which includes the Funding and Analytics Division led by Travis Keltner. It is designed to create a holistic approach to funding and transformation solutions for institutional buy-side clients.
Ahlner tells SFT that collateral management as part of an effective post-trade business is no longer optional for several buy-side firms and today’s announcement of a move into triparty is the latest step in State Street’s overall strategy to provide efficiencies for clients amid the increasingly regulated environment.
Speaking recently to SFT, he explained that the triparty collateral platform will operate as a pre and post-trade collateral optimisation engine.
"This is part of the same platform as our other solutions to enable buy-side firms to easily pick up new tools down the road such as our peer-to-peer or securities lending facilities or access to sponsored repo," he said.
State Street is working with several fintech firms and vendors as part of its overall collateral strategy including Vermeg, Transcend Street and Cassini Systems, among others.
The full conversation with Staffan Ahlner is free to read in the latest issue of Securities Finance Times.
