Urban perspective of contemporary office buildings in London

Nasdaq Calypso Collateral, Margin & Securities Finance

The growing need to integrate the collateral function with the treasury and capital market trading solution is driven by new pricing, hedging, and counterparty risk best-practices, and by larger regulatory frameworks including UMR, SA-CCR, and SFTR.

Contact Us
Overview

A Single Cash and Security Inventory to Optimally Manage Margin Calls, Allocate Collateral, and Trade Securities Finance Transactions

Facing increased demand for non-cash collateral, firms need to optimize inventory to lend, pledge as collateral, or repo. Hampered by siloed data, systems, fragmented inventories, and manual processes, firms must access data and processes across the organization to optimize their assets and cover collateral requirements.

Our Solution

We help financial institutions reduce counterparty credit risk while strengthening processing and data consistency. With Nasdaq, you can meet today’s many challenges across margin calculations for cleared and uncleared trades, collateral management, and securities financing.

Our solution delivers a robust straight-through processing (STP) workflow that simplifies users’ needs in real time, provides comprehensive cross-asset coverage, and supports multi-agreements. Its rich connectivity enables seamless integration with utility services and tri-party agents.

On a single automated workstation, we deliver seamless collateral inputs for:

Real-Time Desk Risk, Positions, and Market Data

Comprehensive Real-Time Analytics

Interactive, Configurable Dashboards to Efficiently Manage Intraday Risk and Valuation

Risk and Inventory Management

Collateral Optimization

Settlement Processing

Nasdaq & QCP Set New Standard of Capital Efficiency by Connecting Canton Network to Nasdaq Calypso Built on Nasdaq Calypso and integrated with the Canton Network, the technology enables real-time collateral transfers and intraday margining across crypto derivatives, fixed income, exchange-traded and OTC derivatives. Developed in partnership with QCP, Primrose Capital Management, and Digital Asset, this milestone demonstrates how blockchain can enhance capital efficiency, reduce risk, and modernize post-trade infrastructure across asset classes. Learn More
Features

Explore Product Features

Margin Collateral Securities Finance Reconciliation

Comprehensive Coverage

Margin calculation across ETD, OTC cleared, and OTC uncleared trades with support for end users, FCMs, and CCPs.

Greater Visibility and Accuracy

Headroom and initial margin trading limits, portfolio cross-margining, grid computing for rapid calculations, as well as all-in cost calculation.

Increased Flexibility

Standalone or integrated deployment with Nasdaq Calypso’s front-to-back solution delivered on a single technology stack.

Simplified Compliance

Fast track regulatory compliance, including Certified ISDA SIMM compliance, with holistic solutions that leverage standardized integrations.

Margin Optimization

Reduce exposure before managing collateral by running What-if across OTC cleared and OTC uncleared margin. For OTC uncleared, optimize at the CSA Level by comparing across currencies and optimize the exposure by simulating trades across accounts as well as SIMM vs Grid.

Beyond Calculating IM

User friendly dashboards, AANA Calculation, group threshold monitoring, back testing, and external data integrations offer a complete margin solution, going beyond just an IM calculation.

Risk Reduction

Reduce counterparty credit risk, especially in terms of risk mitigation for OTC or ETD, cleared or uncleared, derivatives trading. Ensure full collateralization for securities financing transactions in real time.

Optimal Inventory Usage

Centralized inventory provides increased visibility into collateral positions, exposure netting across multiple business lines, optimal allocation and minimal deployment of cash collateral.

Comprehensive Coverage

Supports any agreement type, is fully multi-entity and able to manage any complexity of legal entity structures.

Holistic View

Provides a single solution to manage all exposures that need to be collateralized.

Increased Automation

Achieve faster processing time and eliminate manual interventions in processing margin calls.

Utility Connectivity

Achieve end-to-end STP Nasdaq Calypso’s connectivity to Acadia MarginManager and triparty agents.

Integrated, Comprehensive Coverage

A complete front-to-back solution with support for all trade, maturity types, and lifecycle events across both repo and securities lending as well as full support for stock and cash corporate actions.

Optimized Inventory

Leverages Nasdaq Calypso’s, comprehensive real-time inventory to display all positions and balances of repo, securities lending and collateral across bonds and equities.

Increased Accuracy and Control

Rich functionality including P&L reporting, risk analytics, tools for regulatory compliance as well as the ability to trade, drill down, or report on all of the required transactions.

Reduced Funding Costs

Collateral trading desks take advantage of our securities finance front-to-back office to access repo and securities lending markets in order to release contingent liquidity and reduce overall funding costs for the enterprise.

SFTR Reporting Requirements

Meet ESMA reporting obligations using Nasdaq Calypso’s full SFTR reporting solution.

Increased Visibility and Improved ROI

Achieve a consolidated view of cash and securities inventory, enhancing the ability to manage and reduce risk and improve ROI.

Dashboard Summarizing Calls for Action

A No-Code User Experience

Granular Access Permissions

Data Standardization, Transformation, Aggregation, and Segregation

Multi-Key and Selective Matching

Integration via REST API

Benefits

Collateral, Margin & Securities Finance

Consolidated and Connected

With full visibility into the entire collateral and securities financing lifecycle and support for an exhaustive range of functionalities, you can consolidate all of your exposures, from any derivatives or securities financing trading, in a single place. Real time connectivity to collateral utilities and tri-party agents provides a single up-to-date view of and the current status of all of your exposures.

Centralized Inventory

With consolidated cash and security collateral and inventory management updated in real time, you can optimally cover all exposures. The solution’s processing and accounting functionalities include custodian notifications, failed deliveries, and SWIFT support enabling fast reconciliation.

Automated and Configurable

Rich out-of-the box fully automated processes are easily configurable based on user preferences and client schedules. You can quickly optimize your margin calculations, collateral, and enhance business risk management. The solution’s automation, consolidation, and cloud-enablement enhance TCO reduction potential.

Full Securities Finance Trading and Lifecycle

The solution’s specialized functionalities covering repos, securities lending transactions, and SFTR reporting include user-defined reports, analytics, and stress-testing. We enable users to easily manage the trade lifecycle, end-to-end.

Holistic, Validated Margin Coverage

Our suite of margin-exposure coverage includes VM, IA, Grid, and ISDA‑certified SIMM and IM for cleared trades. Users leverage this validated coverage for margin calculation, what-if analysis, and threshold monitoring. Automated, transparent calculations drive efficiencies, and enable confident decision-making and reporting.

Future-Proofed and Optimized

Our cloud-enabled automated solution provides you a single foundation to centralize collateral management through the trade and processing lifecycle, achieve data consistency, optimize collateral inventory, and meet changing regulatory requirements such as UMR.

Explore how the modular Nasdaq Calypso capital markets and treasury platform serves the financial ecosystem.

Nasdaq Calypso

​​​A versatile foundation with​​ solutions​ built to scale.

Front Office Treasury Middle Office & Trading Risk Clearing Post-Trade Processing Reserve & Monetary Policy Management Nasdaq CapCloud
Featured Videos

Nasdaq Tech Stories

Nasdaq Tech Spotlight: ComDer
Recently, Pablo Rodriguez, Chief Risk Officer, at ComDer, the derivatives central counterparty for Chilean derivatives located in Chile, spoke about the complexities of OTC derivatives and the need to have advanced technology.
Oct 15, 2024
Resources

Additional Information

Explore Additional Resources