Regulations such as EMIR in Europe, Dodd-Frank in the US and others have increased required margin exchanges to ensure that there is sufficient collateral, if needed. But high-quality collateral demands are difficult to meet with the current technology and operations available for collateral management. In fact, 15% of collateral is currently left idle, costing ~$4.5 Bn/year.
The current practice in the collateralized OTC derivatives market is to exchange margin call notices, and confirmations of collateral settlement without the use of any centrally-defined standard message format. These notices are delivered via various media, predominantly email. Therefore, firms are looking for ways to automate their margin calls to optimize their collateral management.
Synechron’s Robotic Process Automation Accelerator for Margin Call Management uses machine learning for margin call email automation. The solution uses Natural Language Processing (NLP) technologies and automation techniques to process email communications related to OTC Derivatives margin calls and automatically transmit that data into collateral management systems as an authoritative data source for human verification; thereby, speeding up collateral management, increasing accuracy and positively impacting collateral costs.
Features: Automated Processing of Margin Call Emails
To learn more about our Artificial Intelligence solutions for Robotic Process Automation and the work we’re doing email us at email@example.com
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