Pershing Automates Collateral Movement, Management for Its Fund Clients

Pershing said the two applications were intended to help generate operational efficiencies and cost savings and to address managers’ concerns about counterparty risk and collateral management.

“Increasing concern over counterparty risk, coupled with the traditionally cumbersome and time-consuming collateral management process, has led many fund managers to be cautious when pledging collateral to their counterparties,” Gerry Tamburro, managing director at Pershing, said in the statement.

“PrimeConnect and PrimeConnect40 not only eliminate the phone calls, faxes and e-mails, but they provide a clear window into the movement and management of collateral.”

Pershing noted that collateral management, long considered a standard middle-office function, has become a key risk management function because of current financial volatility. Automating this process through online and real-time applications bolsters its fund manager clients’ ability to monitor and manage risk.