Company marks 10-year anniversary with above-target performance, strongest pipeline to date as automation in collateral management takes on increased importance
CloudMargin, a leading global collateral management technology company, announced today that it achieved 35% revenue growth for the fiscal year ended March 31, 2024, ahead of its annual target. The company saw a rise in the value of new annual contracts signed, along with increased business from existing clients, as automation in collateral management assumed a role of increasing importance in firms’ risk mitigation strategies.
The strong performance comes as CloudMargin celebrates its 10th anniversary as the world’s first collateral and margin management solution created specifically for the cloud. The Software-as-a-Service (SaaS) company signed its first client – a UK bank – in 2014. Today, clients range from asset managers and pension funds to banks, brokerages, insurance firms, fund administrators, outsourcers and major industry service providers across the globe. They use the CloudMargin platform to manage their collateral for cleared and uncleared over-the-counter (OTC) products, exchange-traded derivatives, repo and Stock Borrowing and Lending (SBL) products.
CloudMargin CEO Stuart Connolly said: “We’re extraordinarily pleased with the growth of our franchise over the past year and the significant opportunities we intend to leverage in this new fiscal year as we celebrate our 10th anniversary milestone. We have the strongest pipeline in our history, and while we continue to see demand from the buy-side, regional banks are now especially keen to ensure their collateral and margin management program is robust and state-of-the-art. Using the CloudMargin platform, firms can realize substantial cost efficiencies and market-leading automation, with customized reporting, dynamic dashboards to access real-time data and seamless workflow across the entire trade lifecycle.”
Connolly said numerous macroeconomic episodes over the past few years have highlighted that in times of market stress, even some of the largest firms and financial institutions have been challenged by inadequate liquidity and preparedness for increased margin calls. These events have captured the attention of regulators and board members intent on preventing future disasters. He said automation of collateral processing is now a necessity, as evidenced by proposed measures announced last month by the Financial Stability Board (FSB) to enhance the liquidity preparedness of non-bank market participants for margin and collateral calls during market-wide stress.
Over the course of the past year, CloudMargin’s platform – accessed in 52 countries by more than 210 organizations – processed over twice the amount of margin calls exchanged in 2022. The continuously enhanced platform released more than 1,130 updates and introduced 30 new and improved features, automatically benefiting users of the SaaS service.
