SG launches collateral management tool

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Societe Generale has launched Tempo, a collateral management outsourcing solution aimed both at buy-side and sell-side market participants, including traditional and alternative asset managers, institutional investors, banks and major corporates.

Available in agency mode for OTC derivatives, exchange traded derivatives, securities lending and REPO collateral needs, the product includes:

  • Central margining for daily margin call calculations, notifications and collateral substitutions
  • Dispute management for efficient transaction processing and counterparty discrepancy resolution
  • Asset pool management for asset consolidation, liquidity management, collateral oversight and valuation
  • Collateral allocation/optimisation for cost-efficient transactions, collateral transformation and access to high quality collateral pools

The outsourcing solution aims at enabling clients to continue diversifying their investment strategies in compliance with evolving regulatory requirements, while benefiting from diversified collateral mass, productivity gains, reduced counterparty and operational risk and enhanced operational flexibility.

Tempo integrates within a client’s existing contractual and IT ecosystem and can be complemented by Societe Generale Prime Services‘ clearing solution for OTC derivatives.

“With the introduction of new risk management standards and margining regulations for cleared and uncleared derivatives, by EMIR in Europe and the Dodd Frank Act in the United States, collateral will progressively need to be managed by sophisticated, automated processes across a network of multiple counterparties, clearing brokers and central counterparty clearing houses (CCPs). This will entail significant investment to adapt existing systems and to allocate resources capable of handling these new layers of complexity,” the company 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,” commented Clément Phelipeau, product manager, Derivatives and Collateral Management Services, at SGSS.

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