One-Stop Cloud Solution Automates Processes, Fulfills Regulatory Requirements for Asset Manager
CloudMargin, creator of the world’s first and only collateral and margin management solution native to the cloud, announced today that PPM America, Inc. (PPM), a subsidiary of UK-based Prudential plc, has just gone live on its platform. The investment manager with $119.16 billion in assets as of Jan. 31, 2019 – including $9.31 billion managed by PPM Finance Inc., an affiliate that manages commercial mortgage loans and certain real estate investments – is now using CloudMargin for its entire collateral management margin workflow, collateral optimization and trade reconciliation with counterparties and futures commission merchants (FCMs).
CloudMargin CEO Steve Husk said: “We’ve been able to provide PPM with a one-stop solution for all things collateral, from calculating margin to meet Variation and Initial Margin requirements, to reconciling trade-level positions, to enabling the firm to automate its collateral processes, including sending payment instructions directly via SWIFT to its various custodians.”
The collateral workflows have been streamlined at PPM with the implementation of CloudMargin. With the tool, PPM is able to quickly onboard new counterparty relationships and add new accounts to existing relationships in short order. PPM noted the implementation and support staff have been great partners in helping achieve their goals.
Before selecting CloudMargin, Chicago-based PPM had engaged in a comprehensive search for an enterprise collateral management solution that would meet its stringent requirements for workflow, optimization and reconciliation for the wide range of instruments in its portfolio. The agreements and types of transactions the workflow accommodates include:
- ISDA collateral service agreements for bilateral over-the-counter (OTC) derivatives
- Cleared OTC transactions
- Exchange-traded futures and options
- Master Securities Forward Transaction Agreements (MSFTAs) for mortgage-backed securities and TBA (To-Be-Announced) mortgage-backed instruments
CloudMargin has established a global collateral hub, enabling clients to connect to a wide range of additional critical providers of related services across the collateral lifecycle. In addition to utilizing the gateway to SWIFT, PPM is also using the hub’s access to AcadiaSoft MarginSphere for margin call messaging, providing streamlined collateral payment processing.