Stay on track.
With the PMS Collateral Management System.


Collateral Management is the effective and efficient allocation of collaterals to mitigate risks.

The banks’ need for collaterals has been increasing in the past years so that with a growing complexity, Collateral Management plays a more and more important role as a centralised control function.

Control the risks, create success.

The Collateral Management System in PMS refers to a process that is distributed over several PMS modules, among which the central CMS analysis with an integrated interest rate analysis is of particular relevance. It focuses on the margin call settlement in the context of the OTC collateral process (based on “ISDA Best Practices”) including the automatic collateral adjustment.

The CMS analysis additionally incorporates the “CMS EMIR Analysis” (not to be confused with the “EMIR Basis” module 120 320) which with regard to EMIR (which is based on the standards of the ISDA Best Practices for example) offers the main function of data quality checks based on a detailed portfolio reconciliation. Both analyses however can also be applied separately from one another.

CMS Analysis and Margin Dashboard above all are the core functionality of margin call settlements.

The CMS Analysis takes over the “analysis” of the margin calls for each counterparty during the collateral management process: It computes the current collateral coverage (collateralisation, in the sense of current exposure) of the given derivatives analysis positions (the “analysis portfolio”) for this purpose and looks at the bilateral derivatives agreements between one’s own party and the counterparty. The calculation results are stored on the database and form the basis for the remaining call settlement via margin dashboard.

Based on the CMS analysis results, the Margin Dashboard organises all calls relating to the portfolio analysed through the margin call analysis. This means that the margin dashboard is primarily in charge of visualising all presently existing calls and offers all actions relevant for a call settlement with the respective counterparty up to a collateral transfer including the required report output.

The interest rate analysis as well as the EMIR analysis are conducted regardless of that.