SIA-CMS (Collateral Management System)

SIA-CMS is a solution designed to manage assets used as collateral for the management of counterparty risks.

SIA-CMS 2.0 meets the new requirements and challenges posed by the rapid evolution in the sector of CSDs (Central Securities Depositories), as well as Central Banks and CCPs (Central Counterparties).
SIA-CMS is a modular system, built with a set of business components. The ability to configure the system allows the evolution of the business to be followed, offering the possibility to add further functions, according to each individual customer’s requirements.

Main functions:

  • aggregated visualization of the financial instruments owned by a customer at one or more depositaries in the same or different locations, thus reinforcing access to the financial instruments available thanks to an aggregate view
  • collateral pooling (to comply with the requirements of Central Banks regarding the collateral framework)
  • a process (approval cycle of financial instruments) focusing on the analysis of financial instruments with the aim of identifying those deemed suitable according to different sets of complex rules
  • real time settlement.

The business components include participant preferences, management of financial instrument selection, approval cycle for eligibility, participant accounts mirroring to build aggregate views of the financial instruments held, mark to market and reporting management.
SIA-CMS offers various additional modules:

  • integration management
  • tri-party repo
  • free concessions
  • collateral pool
  • loans against collateral pool
  • securities lending
  • billing management
  • fair value asset evaluation
  • management of access by third parties
  • marginal lending 
Advantages:
  • tri-party repo, free lending of securities, collateral pool, earmarks and loans against collateral pool, management of central bank monetary operations
  • complex eligibility rules sets and approval cycle for financial instruments to evaluate their eligibility through continuous verification
  • mark to market and margin call/margin excess notifications
  • wide variety of assets usable as collateral (including credit claims), held at a variety of CSDs and custodians, with aggregate view of all assets across multiple custodians
  • extremely high level of configurability for all business characteristics
  • multiple haircut and concentration limits
  • collateral re-hypothecation
  • automatic collateral selection based on cheapest to deliver or highest unit profit/loss
  • settlement fails minimization through directly managed DvP, with support for Target2 Securities
  • ease of integration with existing systems through integration module.