“We have the strongest pipeline in our history, and while we continue to see demand from the buy-side, regional banks are now especially keen to ensure their collateral and margin management program is robust and state-of-the-art.”
CloudMargin has achieved 35% revenue growth for the fiscal year ended March 31, 2024, according to the collateral management technology company which has seen a rise in the value of new annual contracts signed, along with increased business from existing clients.
Automation in collateral management assumed a role of increasing importance in firms’ risk mitigation strategies in recent years and CloudMargin, which celebrates its 10th anniversary as the world’s first collateral and margin management solution created specifically for the cloud. The Software-as-a-Service (SaaS) company signed its first client – a UK bank – in 2014. Today, clients range from asset managers and pension funds to banks, brokerages, insurance firms, fund administrators, outsourcers and major industry service providers across the globe. They use the CloudMargin platform to manage their collateral for cleared and uncleared over-the-counter (OTC) products, exchange-traded derivatives, repo and Stock Borrowing and Lending (SBL) products.
Regional banks want better collateral and margin management
Stuart Connolly, CEO of CloudMargin, said: “We’re extraordinarily pleased with the growth of our franchise over the past year and the significant opportunities we intend to leverage in this new fiscal year as we celebrate our 10th anniversary milestone. We have the strongest pipeline in our history, and while we continue to see demand from the buy-side, regional banks are now especially keen to ensure their collateral and margin management program is robust and state-of-the-art. Using the CloudMargin platform, firms can realize substantial cost efficiencies and market-leading automation, with customized reporting, dynamic dashboards to access real-time data and seamless workflow across the entire trade lifecycle.”
Recent macroeconomic episodes events have challenged firms with inadequate liquidity and lack of preparedness for increased margin calls. Automation of collateral processing is now a necessity, according to Connolly. CloudMargin, processed over twice the amount of margin calls exchanged in 2023 when compared to 2022.
