Strategic Partnership Announced
In a significant move within the financial services sector, Smartstream has formed a partnership with ActiveViam to enhance collateral optimization solutions. This collaboration combines Smartstream’s industry-leading Smart Collateral platform with ActiveViam’s Atoti Collateral Optimization tool. The integration aims to assist financial institutions in effectively allocating collateral, minimizing reliance on expensive liquidity reserves, and achieving a swift return on investment.
Benefits of the Integrated Solution
The joint offering presents a powerful and modular solution designed to meet the intricate demands of treasury and capital markets. By streamlining processes, the partnership facilitates the efficient use of cheaper-to-deliver assets, thus alleviating the pressure on costly liquidity buffers. This comprehensive approach not only supports compliance with critical regulatory frameworks such as UMR, EMIR, and Basel III but also empowers clients to utilize their collateral inventories more effectively.
Roland Brandli, who heads Partners and Alliances at Smartstream, emphasized the value of this collaboration by stating that the union of two industry leaders creates an attractive option for clients. He noted that as the demands of clients become increasingly sophisticated, the need for advanced tools that optimize collateral across various inventory lines is paramount. This partnership is expected to enhance efficiency in utilizing high-quality liquid assets, thereby improving overall operational performance.
Client-Centric Approach
Echoing this sentiment, Florence Falck, Head of Partners at ActiveViam, expressed excitement about the partnership, highlighting that it provides a robust, cost-effective solution. She stressed that this collaboration will allow clients to maximize the efficiency of their inventories while also safeguarding their liquidity buffers.
The solution is designed with modern architecture and modular capabilities, allowing for customization to fulfill each client’s unique needs. It integrates seamlessly with Smartstream’s collateral infrastructure, offering high levels of automation and facilitating straight-through processing (STP) for collateral flows between different counterparties. This feature becomes increasingly important as regulatory requirements evolve, ensuring clients remain compliant while also optimizing their high-quality liquid assets.
In conclusion, the partnership between Smartstream and ActiveViam represents a strategic effort to address the pressing challenges faced by financial institutions in collateral management. By leveraging advanced technology and analytics, the collaboration promises to deliver significant efficiencies and cost savings in an increasingly complex financial landscape.
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