Will building a Liquidity Monitoring System from the bottom-up satisfy regulators?

Eight years after the credit crisis, banks are still struggling to map out and build a comprehensive collateral/liquidity management solution that will satisfy Dodd-Frank. From the bank’s perspective, the new normal is to accept the fines. This is viewed as a far more cost effective solution than justifying a sizeable investment to fix a system that is deemed too complex for a department that is traditionally considered to be a cost center. 

Check out our latest collateral management app powered by OpenFin

The Eikos Collateral Management Solution (ECMS) allows the buy-side to maintain liquidity and manage different types of risk by providing a single point of reference to monitor, analyze, and minimize a funds’ collateral and risk exposure across all trading counterparties. The single platform and interface design provides the Cash Management Team an early indication of all their funds liquidity level before the start of the trading session.

Liquidity management on the go

The business requirement

A major financial institution needed to build a liquidity management system to monitor its positions and give management the tools to determine exposure while monitoring for regulatory compliance and risk. The initial delivery was a desktop-based solution using a tired architecture of:

  • Data acquisition and ingestion
  • Business rules processing
  • Web services
  • UI framework
  • Desktop browser