Tri-party Collateral Management Service

Client Requirement:

The client wished to design and implement a global tri-party collateral management service as a commercial offering to augment its existing securities finance offering. The tri-party collateral platform will provide borrowers with a single view of their clearing and custody assets held throughout the bank’s global network. An automated collateral allocation process will select eligible assets to deliver to lenders to maximise the funding capacity if the borrower’s collateral inventory. 

The service will also offer lenders a single view of their collateral inventory, and allow them to adjust eligibility criteria and concentration limits for each borrower with whom they have a bilateral relationship.

The initial phase of the project includes the specification of the service proposition, documentation of business requirements and production of the Functional Component Model. In subsequent phases, technology solutions (buy and build) for will be evaluated and the defined solution architecture will be implemented.

Our Engagement:

InteDelta was engaged by the client to support the requirements process, covering all aspects of business and technology capabilities.  We applied our consulting approach to support the client with:

• Analysis and documentation of high-level and detailed business requirements;
• Analysis of current state systems infrastructure and engagement with internal business and technology teams;
• Engagement with candidate bespoke build and package solution vendors;
• Overall programme management.

The key outputs of the initiative were:

• High-level and detailed business requirements documentation for the core tri-party functionality and associated internal system builds;
• Functional Component Model to support technology solution evaluation;
• Initial evaluation of candidate solution vendor proposals;
• Project planning and governance.

Our Approach:

InteDelta provided a team of consultants, including project managers and subject matter experts to support the client in the construction of the business case, the documentation of detailed business requirements and the evaluation of candidate solution partners. The project required extensive co-ordination of various of the client’s business and technology teams to secure commitment to support initial and future phases of work. 

Business Benefits:

By leveraging InteDelta’s subject matter expertise, the client was able to accelerate the documentation of detailed business requirements which then formed the basis for the solicitation and evaluation of proposals from candidate solution partners. InteDelta’s project management capability also assisted in the process of securing buy-in from internal partners.