Finadium releases report on collateral management technology: early end of a boom in product usage

The collateral management technology industry is at the early end of a boom in product usage. The credit crisis of 2008 showed unequivocally that collateral management entails real risks, and firms that fail to manage those risks appropriately can fail suddenly. Nowhere was this lesson felt most harshly than at Bear Stearns and Lehman Brothers. Today there remains over US$600 trillion in OTC and listed derivative trades outstanding, all of which requires active collateral management.

This report analyzes the business opportunity and selection criteria for collateral management technology vendors. It provides a review of seven leading vendors today, as well as their management’s perspective on the evolution of the collateral management technology space. Our findings are driven by conversations with a variety of market participants, including asset managers, software vendors, integration consultants and large banks. We attempt to put some shape around a topic that has gotten substantial attention over the last year and a half but that can remain difficult to define, even at the largest financial institutions.

For more information please visit www.finadium.com.