Press Release Summary:
Modular functions offer support for cross-asset collateral and margin management and processing for securities lending. Inventory management module supports consolidation of settled stock positions, open outright trades, borrowing and lending activities, and off balance sheet activity from multiple contributing systems and across multiple entities in multi-time zone environment. Securities lending module provides comprehensive processing of stock borrow and loan transactions from trade capture.
Original Press Release:
ADP Wilco Announces Functionality for Global Inventory Management, Cross-Asset Collateral and Margin Management and Processing for Securities Lending
Automatic Data Processing, Inc. (NYSE: ADP) subsidiary ADP Wilco has announced a range of modular functions offering full support for cross-asset global inventory management, collateral and margin management and comprehensive processing for securities lending.
The cross-asset inventory management module provides full support for the consolidation of settled stock positions, open outright trades, borrowing and lending activities and off balance sheet activity from multiple contributing systems and across multiple entities in a multi-time zone environment. It is already interfaced with ADP's international processing platform.
The cross-product collateral and margin management module provides full support for collateralisation and credit risk mitigation across different business lines simultaneously. It takes the inventory management module as its foundation and combines this information with the terms and descriptions of margining agreements and credit support terms, together with current market data to generate collateral portfolios and calculate latest margin calls and returns. Advanced workflow then allows collateral managers to deal with specific requirements for each counterparty, such as issuing and receiving margin calls, resolving disputes, performing reconciliations, adjusting valuation and pricing data, and handling the transfer of eligible collateral.
The securities lending module provides comprehensive processing of stock borrow and loan transactions from trade capture, through margining and fee calculation, to the generation of the relevant accounting entries. It is interfaced with ADP's international back office platform enabling full settlement of stock borrow loan movements if required.
"Cross-product collateral and margin management is rapidly becoming a core function and, on a global basis, banks, finance firms and corporates, both small and large, are looking for suitable robust, integrated solutions. The impetus for this comes not only from the need to address new external regulatory standards of risk management but also from internal business mandates to maintain existing market share as well as new business development," said Robin Kneale, product manager, ADP Wilco.
All modules can work together or independently and are seamlessly delivered across an intranet. They can be delivered on-site or hosted in ADP's industry leading data centre.
These new modules are powered by the Allustra Kyros product suite.
Mark James, Managing Director of Allustra said: "Given the growing importance of collateral and margin management as well as securities lending, Allustra is delighted that ADP, with its unrivalled global presence and reputation, has chosen the Kyros product suite to power its new offerings in these key areas."
As the premier provider of transaction services to the financial industry, ADP has the capacity and technological expertise to assist its clients in differentiating themselves in the marketplace. ADP brings to financial intermediaries advanced, integrated systems for securities processing, desktop productivity and investor communication services, all focused on providing solutions for straight through processing and World Class Service.
ADP, with $8.5 billion in revenues and approximately 590,000 clients worldwide, is one of the largest providers of a broad range of premier, mission-critical, cost-effective transaction processing and information-based business solutions. For more information about ADP Brokerage Services Group, please visit www.bsg.adp.com and for other ADP services and investor information, please visit www.adp.com.
Allustra is a London-based provider of solutions for global banking and finance. Allustra specialises in designing and creating solutions for collateral and margin management, securities finance and order management.
Kyros is Allustra's flagship product. Kyros provides an enterprise-wide, modular platform for organisations wanting to achieve rapid business growth, cost savings and resource efficiencies, as well as allowing entry to new markets.
Press enquiries to:
ADP Brokerage Services Group
T: +44 (0)20 7551 3224