FIA Tech Launches Cash and Collateral Data Service
Posted by Colin Lambert. Last updated: July 6, 2022
FIA Tech has launched a cash and collateral reference data service that it says will be used by several clearing firms who manage more than $120 billion of collateral for customers trading futures in the US alone.
FIA Tech says Cash and Collateral is a globally collated data set that covers 40 clearinghouses around the world. The data are sourced from FIA Tech’s central counterparty (CCP) partners and available on the Databank Network and offers a standardised, aggregated view of collateral instruments accepted by CCPs. This eliminates the manual process of extracting and parsing exchange and CCP information for FCMs and their clients, FIA Tec says, adding, the service also provides crucial data points such as haircuts, concentration limits and collateral management fees which are essential for collateral and risk management.
“Inefficiencies in data sourcing waste valuable time, effort, and resources,” says Andrew Castello, head of reference data. “FIA Tech’s newest Cash & Collateral initiative is designed to dramatically reduce manual data collection and significantly improve operational processing. Particularly in times of market volatility and inflation, it is crucial that firms understand and accurately capture CCP acceptable collateral, haircuts, interest rates, and fees to strategically optimize their margin calls.”