BOSTON & LONDON & HONG KONG – (COMMERCIAL THREAD) – State Street Corporation (NYSE: STT) today announced that it has added capabilities to its Collateral + service for pre- and post-trade optimization and market-leading margin analysis. In partnership with Cassini Systems, the leading provider of pre- and post-trade margin analysis and guarantees for derivatives market participants, Collateral + now offers an integrated and modular approach to optimization, which addresses the effectiveness of guarantees from several angles .
First, it integrates the impact of guarantees and financing into the front office decision strategy before placing transactions. With the addition of Cassini’s technology, Collateral + can optimize the impact on margin and carry costs, providing the best trade route by identifying all possible ways of executing and clearing the transaction and putting highlight the lowest cost. Collateral + can also offer margin optimization as a post-trade utility with tools such as novation and compression to reduce margins and funding requirements.
Another module provides true optimization of collateral stocks based on the costs of financing customer collateral in combination with costs such as clearing fees. This optimization highlights the optimal placement of collateral and the lowest transaction cost routes. Through the bank’s liquidity offerings, including Sponsored Repo and the new Peer-to-Peer Repo, clients can leverage additional liquidity and enhanced securities income to effectively execute and grow their investments.
“As an industry, we have long had the ambition to provide collateral impacts and business opportunities to front office decision makers. Our work with Cassini to develop Collateral + to provide the intelligence and pre-trade knowledge to the desk enables State Street to achieve this, ”said Sam Edwards, Collateral + Manager in APAC for State Street. “We grow with our clients and develop end-to-end tools and liquidity products to allow our partners to focus on their strengths.
Today’s announcement builds on the momentum of State Street’s Collateral + business, as the platform recently went live with Acadia Initial Margin Exposure Manager (IMEM) and DTCC Margin Transit Utility (MTU), which simplifies the transfer of collateral between market participants and makes it easier for clients to comply with Unmatched Margin Rules (UMR) guidelines.
Cassini Systems CEO Liam Huxley said: “We are delighted to partner with State Street to further enhance the Collateral + offering with optimization capabilities and analytics that can bring our customers substantial savings and real understanding front-to-back costs throughout the lifecycle. of a trade. The ability to apply these analyzes to UMR’s initial margin requirements is a powerful way to identify optimal counterparties and strategically manage thresholds with every trading decision.
About State Street Corporation
State Street Corporation (NYSE: STT) is a leading global provider of financial services to institutional investors, including investment services, investment management, and investment research and trading. With $ 43.3 trillion in assets under custody and / or administration and $ 3.9 trillion * in assets under management as of September 30, 2021, State Street operates globally in more than 100 geographic markets and employs approximately 39,000 people around the world. For more information, visit the State Street website at www.statestreet.com.
* Assets under management as of September 30, 2021 include approximately $ 60 billion in assets with respect to SPDR® products for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) acts only as marketing agent. SSGA FD and State Street Global Advisors are affiliated.
About Cassini Systems
Founded in 2014, Cassini Systems offers an award-winning derivatives margin analysis platform that provides the industry’s only front-to-back margin and cost analysis throughout the lifecycle of a transaction. Cassini users can calculate any margin on any cleared or non-cleared derivative asset; analyze the drivers and evolution of exposure to margins; reduce initial margin levels; and maximize margin efficiency with the company’s advanced advanced algorithms. Cassini services have a proven track record in improving portfolio returns at every stage of the daily business cycle, giving traders and portfolio managers the ability to instantly analyze in the pre-trade phase the overall cost of a transaction. transaction. Leading hedge funds, asset managers and Tier 1 banks trust Cassini for powerful, flexible and automated tools to manage their OTC and exchange-traded derivative portfolios. For more information visit www.cassinisystems.com.