German financial services giant Deutsche Bank AG (FRA:DBK) has announced that it is now working with CloudMargin to integrate the CloudMargin platform into its Collateral infrastructure.
Joseph Macdonald, Global Head of Collateral Optimisation Trading for Deutsche Bank, said:
Moving our collateral and margin management on to an online platform means that we and our clients will enjoy a reduction in risk and resource-draining emails and calls. This is believed to be the first time a Tier 1 bank will use a public cloud-based service for a critical piece of infrastructure, such as managing margin calls with its own counterparties. For our clients, this will make for an intuitive online user experience on the platform. The movement of our collateral management programme to CloudMargin is also in line with a number of the bank’s goals: enhancing our client service, being technology-led and improving efficiency. The cloud platform will give us a cost-effective means of servicing our clients, regardless of their size.
Deutsche Bank and its clients will now benefit from access to the same information about the obligations and required actions for their cleared and non-cleared over-the-counter (OTC) transactions. The transparency will reduce manual intervention and eliminate discrepancies that would otherwise take time and resources to resolve.
CloudMargin CEO Steve Husk commented:
We’re delighted to team up with Deutsche Bank on this initiative to manage not only its global collateral needs but those of its clients of all sizes trading a broad range of instruments. Deutsche Bank interacts with virtually every other major bank as a counterparty, and its clients range from the world’s largest institutions to smaller buy-side market participants. Our solution enables the sell-side institution to provide the same high-quality service, efficiencies and transparency to everyone while achieving significant internal cost savings and operational improvements to these systemically important processes.
Leaprate reminds that last year the U.S. Securities and Exchange Commission (SEC) fined two U.S.-based subsidiaries of Deutsche Bank AG (FRA:DBK) nearly $75 million to settle charges of improper handling of “pre-released” American Depositary Receipts (ADRs).