What is Smart Collateral and which business lines does it support?

Smart Collateral is an enterprise collateral management platform from Smartstream that automates margin calls, eligibility management, collateral optimisation, and inventory tracking across all business lines - including OTC derivatives, cleared derivatives, repo, and stock lending (SBL). It is used by Tier 1 and Tier 2 banks, custodians, service providers, and buy-side firms.

How does Smart Collateral support UMR and regulatory compliance?

Smart Collateral includes built-in reporting to support Uncleared Margin Rules (UMR), CSDR, and SFTR obligations without requiring heavy implementation overhead. The platform's SIMM calculations engine supports initial margin computation, and its eligibility and concentration rule builders allow firms to model and manage regulatory constraints at the agreement level.

What STP rates does Smart Collateral achieve?

Smart Collateral's exception-based processing model enables straight-through processing (STP) rates of up to 90% across all collateral events, including margin calls, interest, and substitutions. This reduces the volume of manual interventions required from operations teams significantly.

What deployment options are available for Smart Collateral?

Smart Collateral is available as a cloud-native SaaS deployment on Amazon Web Services (AWS) or as a secure on-premise installation. In the SaaS model, each client has a fully segregated instance with no data commingling. Smartstream accommodates client upgrade schedules and internal testing timelines, with backwards-compatible APIs to support low-touch rollouts.

How does Smart Collateral handle collateral optimisation?

Smart Collateral supports collateral optimisation through rule-based ladders, algorithmic simulations, API plug-ins, and forecasting tools. Centralised inventory management provides a consolidated view of internal and external collateral, while real-time fail management integrates with settlement and reconciliation data to reduce exposure from settlement failures.