Securities Finance Technology News | SmartStream Launches Eligibility API for Guarantee Optimization

SmartStream Technologies has launched a new solution for faster optimization of warranty management.

The Eligibility API is a platform for customers to receive eligibility information contained in Collateral Agreements such as Credit Support Schedule, Global Master Repurchase Agreements and Repurchase Agreements. foreign securities lenders, for the optimization of pre-trade and post-trade collateral.

With the Eligibility API solution, SmartStream will provide businesses with a way to publish eligible collateral for each legal agreement, which can then be consumed by their optimization engines.

SmartStream’s new Application Programming Interface (API) allows quick and easy access to warranties, including upgradeability. In addition, the new solution allows the search for information on eligibility in real time.

With the impending implementation of the Uncleared Margin Rules (UMR) Phase 6 regulatory regime in September 2022, margin call volumes are expected to increase and there will be an inevitable compression of pledged assets, says SmartStream.

This will result in an increase in demand for high quality liquid assets (HQLA), he adds.

Additionally, given the expected rise in interest rates, firms are considering pre- and post-trade optimization to support efficient use of scarce HQLA and cash.

Jason Ang, Program Manager, Warranty Management at SmartStream, says, “We realize that the UMR deadline is fast approaching, and we’ve made it easy to deploy our new solution and manage future releases without the need long implementation projects.

“Having a public API policy reduces the cost of ownership of the collateral solution. Demand for this new API is high and we are having discussions with major banks on how they can use our eligibility to optimize their collateral for the future. »