The combination of more fragmented trading markets, with more onerous intraday margin call requirements is greatly increasing the pressure on Operations to find efficient digital solutions. The multi-firm interactions with non-standard workflows and industry massaging standards create headaches for collateral management operations handing margin calls for OTC derivatives. Synechron’s Margin Call Automation Network Accelerator is powered by the Symphony communications platform. The Margin Call Automation Network Accelerator – Powered by Symphony is a workflow bot engine built on top of the secure inter-firm communications platform for automated margin call management with fit-for-purpose infrastructure across the middle office.
The Accelerator uses Symphony chat with two bots to automate margin call management and enable Automation and AI.
The Process Automation Bot - runs a process with an external margin call system
The Artificial Intelligence Bot –interprets natural language text to identify the intentions of messages to propose next steps
Either counterparty can write a free text message that will be interpreted by natural language processing bot to then trigger the automated margin call. A process automation bot runs the margin call calculation by calling back to the external margin call system. The margin call rules are outlined in the Credit Support Annex (CSA), which outline the margin thresholds for which collateral is setup. A valuation is run on a periodic frequency or ad hoc to review the over- or under- coverage for all of the Foreign Exchange (FX) Futures trades under the CSA using an open source FX API call. The margin call amount is pending cash payment.
/ /Key benefits can include
Robotic Process Automation driven from communications
Natural Language Processing (NLP) to interpret the request
Automated margin call calculation by the actor for their counterparty at any time
A cyber-secure channel with end-to-end encryption to interact between counterparties
Auto-creation of channel groups for secure chat – inter or intrabank.