Trascend addresses need to integrate ESG data into collateral management

“Our new ESG solutions deliver a configurable solution to integrate these criteria into the broader Transcend product suite.”

Transcend claims to be the first technology vendor to systematically integrate ESG data into collateral management processes.

The provider of analytics, optimization, and automation for collateral, liquidity, and funding, has made ESG criteria available to integrate into collateral decisions and analytics.

Bimal Kadikar, Chief Executive Officer at Transcend, commented: “We understand how critical it is to stay ahead of the needs of our customers and partners and develop truly future-generation solutions. With ESG now impacting all aspects of the financial services ecosystem and becoming increasingly present in collateralized businesses, integrating ESG data into Transcend’s infrastructure was a natural next step in our innovation strategy.”

Todd Hodgin, Transcends new Global Head of Product, said: “Our new ESG solutions deliver a configurable solution to integrate these criteria into the broader Transcend product suite. As with all Transcend products, we are proud to deliver the capabilities required to help our clients efficiently and effectively meet requirements today, while offering the flexibility needed to nimbly adapt to best practices as they evolve in the future.”

Transcend’s ESG capabilities seamlessly allow clients to:
• Centrally store ESG criteria alongside ESG performance metrics and collateral schedules for robust inventory management, rich portfolio analytics and seamless booking automation
• Systematically run intraday or ad hoc validation and sufficiency testing to assess whether collateral received is in line with client and/or internal ESG requirements
• Integrate ESG criteria into Transcend’s optimization engine for collateral recommendations that meet ESG requirements while improving performance.
• Flexibly integrate with any preferred ESG data provider

As the industry looks to standardize ESG data and agreements, Transcend shows the way to ingest ESG criteria in a variety of client-preferred formats including restriction lists, scores, and metrics.

Market participants can count on Transcend for a scalable infrastructure to integrate disparate counterparty and client agreements and further automate collateral decisions.

Transcend has recently launched CCP Central, which connects, optimizes, and automates enterprise-wide margin and collateral activities across a global network of Central Clearing Counterparties (CCPs).

Transcend’s functionality and optimization capabilities empower firms to systematically identify and execute the securities movements that satisfy their margin requirement. Ultimately, this helps firms reserve scarce collateral resources and improve liquidity while driving enhanced operational efficiency.