Paris, October 4, 2011 – Arpson, financial software solution publisher, announces the availability of a collateral management module in its offer Arpson N2 – N3.
Known for the quality of its functional cover, Arpson N2 – N3 is a software solution offering to banks, asset managers and treasurers one of the most powerful systems in its sector for the management of market, cash and asset deals. With this new module, Arpson allows contractors to set up collateral agreements and improve their operational efficiency by optimizing the collateral management, from identification to recognition within the system.
The contractor can define the collateral agreement in the system by identifying the agreement (CSA), the third part and assigning automatically the conventions to market deals, according to the rules defined. he can also set the conditions for remuneration of the guarantee indicating the level of original deposit, the interest scales, the frequency of calculation and type of rate used.
Following the same logic, the contractor shall define the conditions of margin calls in the system, identifies:
- Valuation adopted (calculated valuation, adopted, counterpart, medium)
- Acceptable variatons, specific margins
- Conditional thresholds to start
- Franchise
- Frequency calculations, automatically or on demand
Following the establishment of hedges, the system automates all of the processes involved in the life cycle of the collateral:
- Calculating multi-currency margin call movements
- Materialization processing through fact sheets events
- Sending an automatic e-mail to the various counterparties before calculation validation
- Integration of an external valuation for the process with method like medium, etc.
- Choice of payment currency
Thecontractor has a set of tools and reporting to monitor and analyze stock margin call, to calculate interest (rediscount, regulation, funding method) and to justify the calculation of margin and interest.
Finally, the system enables the recording of cash flows related to the engagement and events of the collateral deal, to materialize in accounting entries (Debit / Credit) and export them to the central site. It is also possible to generate events files from the deals to feed a downstream system.
Module to be acquired to cover the collateral management:
- Collateral management
- The financial instrument modules related to operational, click here for the list
- Market risk / Valuation
- Events management
- Auxiliary accounting
