Collateral Trading / Repo & Securities Lending

Framesoft Repo & SecLending (FRS) is a trading system for repo and securities lending in stocks and bonds. The system provides comprehensive functionality for trade capture, position monitoring and risk management.

Requirements

In recent years interest in collateral trading, repo and securities lending has increased sharply. Main motivation for growing volumes in this business area are:

  • reduction of credit risk
  • reduction of refinancing costs of trading positions
  • generation of additional income

In addition, particularly at custodian banks, interest in security loans and repos is growing in order to offer customers an attractive additional service as part of the custody service.

Solution

Framesoft Repo & SecLending (FRS) is a powerful trading and position keeping system for collateral trading featuring extensive tools for position allocation, P&L and market risk analysis and reporting and settlement.

Supported Transactions

FRS supports the following transactions:
  • Security Borrow / Security Loan
  • Repo / Reverse Repo
  • Buy / Sell back, Sell / Buy Back
  • Money Borrow / Money Loan
  • FX Spot / FX Forward
  • Cash Collateral Borrow / Cash Collateral Loan
  • Security Collateral Borrow / Security Collateral Loan
  • Pledged Securities Received / Pledged Securities Delivered

Functionality

The following functions are provided by FRS:

  • Input and management of trading data
  • Management of securities portfolios
  • Cash management
  • Monitoring counterparty risk and credit line utilization
  • Support in managing dividend compensation payments
  • Fee calculation
  • Profit and loss reporting
  • Supply of information for the reporting system (e.g. CAD reporting)
  • Linkup of real-time data feeds (e.g. Reuters)
  • Extensive reporting on securities positions
  • Authorization management, auditing and password management
  • Online reporting of P&L and market risk based on current market data
  • Stress testing of portfolios on basis of freely definable scenarios
  • Online access for clients to see predefined information (e.g. portfolios)
  • Automated delivery of various reports to clients (internal/external) by mail
  • Global access to FRS via Internet