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Lombard Risk announces another industry collaboration

Published: 04:12 18 Sep 2017 EDT

Banking industry
The integrated offering will bring improved levels of efficiency to the collateral management process

2017 has been a year of industry partnerships for Lombard Risk Management plc (LON:LRM) and it announced another one on Monday, this time with DTCC-Euroclear.

The leading dedicated global provider of collateral management and regulatory reporting solutions announced a strategic alliance with DTCC-Euroclear Global Collateral Ltd to drive further improvements in collateral management operations.

DTCC-Euroclear Global Collateral Ltd is the joint venture between the Depository Trust & Clearing Corporation and Euroclear.

Effectively, what the partnership means is that GlobalCollateral’s Margin Transit Utility (MTU) will be integrated with Lombard Risk’s COLLINE collateral management solution.

COLLINE users will be able to access MTU message statuses directly from their user interface, which will enable a straight-through collateral management process across all asset classes.

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Efficiency gains

The integrated offering will bring improved levels of efficiency to the collateral management process by removing the need to enter transactions across multiple systems, lowering manual processes, promoting data accuracy and increasing insights into the collateral management lifecycle.

Looking further ahead, the partnership should see an expansion of services across market segments and instruments types, as well as the identification of opportunities to collaborate with additional partners to make life easier for those in the middle and back office.

"We are pleased to be working with Lombard Risk on this strategic alliance to enable true front-to-back collateral management processing across buy-side and sell-side firms of all sizes, in order to expand upon the value that each firm provides to its clients,” said Mark Jennis, executive chairman at GlobalCollateral.

“We look forward to delivering our first project under this alliance, the linking of MTU and Lombard Risk COLLINE, which will simplify current collateral management processes, creating a more efficient and streamlined process," he declared.

Alastair Brown, chief executive officer at Lombard Risk, said the alliance with GlobalCollateral would put the company in a better position to achieve its goal of further expanding COLLINE’s global market reach.

“The combination of solutions coupled with Lombard Risk's deep industry expertise and proven track record will enable us to provide new and comprehensive services that help improve operational efficiency, and deliver real value to industry participants and customers," Brown said.

"This alliance expands COLLINE’s market reach globally, to both buy-side and sell-side firms, and will help drive future sales; however, at this stage, we feel it is too early to lift expectations or target price," said Lorne Daniel, an analyst at Lombard's house broker, finnCap.

Shares in Lombard rose 2% to 10.84p on the news.

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