Specialists in Change Management

Collateral Triparty Valuation and Messaging Repository

The MX team developed a business application that provides an exposure management and messaging solution which unifies all of the leading industry Triparty service providers, offering a single-point entry to access each provider’s ‘home page’.  Valuations are managed using Swift ISO 15022 compliant messages, namely outbound MT527 Triparty Collateral Instructions and inbound MT558 Triparty Collateral Status & Processing Advices.

By interfacing with the client’s 4Sight securities lending platform, overnight and intraday valuations are reported to the client indicating where exposure and/or valuation changes exist.  Users can generate either single instructions to the service provider or multiple instructions simultaneously.

Governance exists by administering relationships between the counterparty, beneficial owner and collateral account, which remain a constant within the static data. Population of mandatory data is required to evoke a live relationship; else the valuation cannot be reported and/or processed.

A Swift message template builder exists to service each of the providers, permitting users to comply with the bespoke requirements for each. Whilst ISO 15022 requires mandatory fields that are uniform for all practitioners, the formatting of the qualifiers is often different as are the usage of optional fields. The templates additionally mean that users can comply with the annual Swift Standards Release, should any changes be required to the instruction messages.

Other features that complete this application include, but are not limited to, the following;

  • Optional inclusion of Prepay and Holiday Dates valuations.
  • Duplicate instruction prevention control.
  • Historical message reproduction.
  • Cancellation instructions.
  • Valuation status updates.
  • Borrower valuation reporting.
  • Collateral settlement / exposure feeds to proprietary platforms.
  • Access privilege maintenance.

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