Collateral Optimisation

New regulatory (Dodd-Frank, EMIR and Basel III) and market initiatives are now driving firms of all sizes to radically rethink and change the way collateral is managed. These changes are significant, resulting in innovative strategies in how collateral is used to mitigate risk and improve profitability. Collateral is becoming critical to the funding operations of financial firms of all types and as a result is increasingly prominent and becoming integrated in front of house.

The Calypso Collateral Optimisation solution enables firms to realize new adaptive strategies, bringing all the relevant information together – assets, collateral obligations and constraints from across the whole enterprise. Calypso Technology is the only solution provider that can offer the breadth of full collateral optimisation functionality across asset classes, with full front-to-back office functionality. A key component of the solution is a proprietary algorithm that allows users to intuitively manage the collateral allocation process. Firms can rapidly deploy optimization strategies by simply defining substitution rules, targets, constraints and real-time information governed by traders.