Clients can now receive up-to-date reporting on the location and status of all collateral movements regardless of where the assets are held.
According to the announcement, the Collateral Tracking service expands the traditional core custody function of acting on direction from the asset manager to move collateral, including cash or securities, in and out of an account. The enhanced service automates a previously manual process, which required asset owners to contact each broker or investment manager individually to determine the outstanding collateral at any point in time.
With the new service, clients can send their collateral instructions to State Street’s proprietary collateral tracking hub, which automatically initiates the process of tracking the status and location of all outstanding collateral. Additionally, the service’s fully customizable reporting allows clients to schedule reports to run systematically or upon request, using any combination of date range, advisor, client, counterparty, fund, or product type.
“The Collateral Tracking service provides clients with settlement status updates and event monitoring information to increase transparency and mitigate counterparty risk exposure.” said Patrick Centanni, executive vice president and head of Global Product Management at State Street, in the announcement.“State Street’s new collateral tracking capabilities are a core component of our derivatives strategy, which is designed to address the unique challenges our clients face in the derivatives market today,” said Jeff Conway, executive vice president and head of Investment Manager Operations Servicing at State Street. “State Street’s derivative servicing suite now includes end-to-end OTC and exchange traded derivatives processing, collateral management, and independent valuations.”
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