Adopt a Holistic Securities Finance and Collateral Management Approach
Market forces and regulatory pressure, such as Basel and Uncleared Margin Rules (UMR), drive collateral scarcity and liquidity stress. Complex post-trade processes must be rationalized. Digitalization and automation must be leveraged.
MX.3 for Securities Finance and MX.3 for Collateral Management provide a holistic approach. These solutions streamline trading, settlement and collateral operations for cleared and uncleared OTCs, ETDs, repos, securities lending and synthetic products across equities and fixed income. They feature firmwide real-time inventory and full life cycle support. They natively integrate front-to-back-to-risk and connect seamlessly to key facilities.
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MX.3 for Securities Finance and Collateral Management
Automate, centralize and digitalize with MX.3.
A central, settlement-aware real-time inventory fosters effective trading and collateral management decision-making.
Learn more about Murex’s work with Rabobank to broaden its securities finance offering.
Centralized liquidity and inventory management
Traders, treasurers and collateral users share unique access to firmwide liquidity and inventory across repo, securities lending and synthetic activities.
Real-time asset availability
Traders benefit from a real-time asset availability and location view impacted instantaneously by back office operations.
Controlled liquidity and credit risk
Users oversee liquidity and credit risk and monitor the cash and security flows per counterparty, legal entity or book across different trading locations with a risk factors breakdown.
Intuitive, user-centric design
Manage trade and event booking, collateral allocations, account transfers and more in one click on one screen.
A rich, fit-to-purpose and evolving product catalog, prepackaged configurations, simplified trade presentations and full life cycle support speed time to market.
Rich product catalog
The catalog features repo, securities lending and synthetic products; equity and fixed income underlying; money-fill repo optimizer; various maturity structures and rate types; and bilateral, triparty or cleared.
Out-of-the-box configurations
Predefined yet customizable templates for trade booking, inventory watch and operations, workflows, and more.
Fit-to-purpose life cycle management
Adapted and flexible.
In bulk or at trade level.
A high rate of straight-through processing (STP) and native integration from trade insertion and collateral allocation to settlement and reporting enhance efficiency.
High STP
• Workflows along the SFT life cycle are sophisticated and automated.
Reliability and predictability
• Processes are smooth and swift, regardless of complexity.
• Audits are facilitated at all levels.
• Exception management is active and intuitive.
Scalability
• Large daily flows are managed.
“Finally, there is a solution that optimizes decision-making on settlement and collateral processing that greatly increases automation and autonomy.”
François Nissen, global head of securities finance and collateral management, Rabobank
Consolidating collateral operations, post-trade processing and risk management in one single system brings significant cost efficiencies and operational risk mitigation.
Single source of truth
• Teams share a common set of trades, collateral data and calculations.
Front-to-back-to-risk integration
• Operations are optimized, smoothed and simplified.
Regulatory compliance
• SFTR, EMIR, MiFID2 and MMSR requirements are met.
Repo and securities lending businesses rely on an ecosystem of diverse actors that interoperate closely.
Murex provides prepackaged interfaces to connect frictionlessly to this ecosystem. These include:
• Triparty services
• Trading execution gateways
• Clearing and trade repositories
• Billing and compare, and more
Perform collateral operations from end to end.
• From variation margin (VM) and initial margin (IM) calculation down to settlement and reporting
• For CSA, GMRA/GMSLA and MSFTA
Ensure regulatory compliance with Uncleared Margin Rules (UMR).
• Uncleared OTC trades support across jurisdictions
• Assignment of multiple CSAs for IM and VM
Leverage native front-to-back-to-risk integration.
• Collateral trading, direct margining and collateral transformation with repo and securities lending
• XVA and credit risk calculations on collateralized trades and collateral positions
• Real-time integration of collateral positions in trading and risk dashboard
Rely on a single source of truth.
• Centralized management of multi-assets, with exposures sourced from MX.3 and external systems
• Common set of trades, collateral data and calculations
Learn more about MX.3 for Collateral Management.
“The use of the integrated MX.3 platform generates considerable cost synergies in operations and further development compared to a standalone solution. For the participating units from operations, treasury and risk controlling, several business improvements were achieved compared to the legacy application, for example, in cash/security allocation, electronic margining and an increased level of automation in collateral operations.”
Rüdiger Welsch, head of operations IT, DZ BANK
Real-time global collateral inventory
Coverage of cleared and uncleared OTCs, listed derivatives, repos, securities lending and synthetic products on various forms of collateral
Real-time global asset availability
Monitoring of settlement-aware positions managed by MX.3 or fed by external systems
Inventory life cycle management
Substitutions, releases, negotiation and settlement
Triparty operations
Required value monitoring, long-box operations and connectivity toward triparty agents
Interest management
Interest calculation, interest statement generation and connectivity to Acadia MarginSphere
High STP
• Workflows along the margin call and substitution management are sophisticated and automated.
Reliability and predictability
• Processes are smooth and swift, regardless of complexity.
• Audits are facilitated at all levels.
• Exception management is active and intuitive.
Automated processes
• Allocate calls based on asset priority rules and/or cheapest-to-deliver.
• Monitor initial margin exposures against threshold.
• Prioritize counterparts identified as hard-to-please.
• Generate interest statements.
Minimize IM exposure while expanding trading.
• Pre-trade IM calculation
• Real-time IM exposure monitoring per counterpart and per collateral agreement
Anticipate.
• What-if scenarios on ratings and market data
• Intraday monitoring of available assets
Maximize collateral usage at controlled costs.
• Auto-check of collateral allocation against asset availability and eligibility based on collateral schedules, concentration risk and wrong-way risk
• Firmwide real-time available inventory
• Automatic allocation of cheapest-to-deliver collateral
• Detection and substitution of collateral with suboptimal usage or incoming corporate actions
Collateral management relies on an ecosystem of diverse actors that interoperate closely with increasing standardization.
Murex provides prepackaged interfaces to connect frictionlessly to this collateral management ecosystem.
• Operate Acadia and Trioptima services directly from MX.3 for calls, interests, substitutions, transactions and exposure reconciliations, and IM calculations.
• Interact with triparty agents for daily details update.
• Connect with trading execution gateways, clearing and trade repositories.
• Reconcile statements, transaction exposure and collateral asset valuation via Duco reconciliation.
• Perform settlement operations with prepackaged Swift messages.
About Murex
Murex provides enterprise-wide, cross-asset financial technology solutions. Its MX.3 platform is engineered to meet evolving challenges. It supports trading, treasury, risk and post-trade operations to help clients meet regulatory requirements and to manage risk and IT costs. Murex has more than 60,000 daily users in over 65 countries. Murex supports diverse financial services clients, from banking and asset management to commodities and energy. Murex has over 3,000 team members across 19 locations who provide cutting-edge technology, superior customer service and unique product innovation.
