SmartStream is a recognised leader in financial transaction management solutions that enables firms to improve operational control, reduce costs, build new revenue streams, mitigate risk and comply accurately with regulations.

By helping its customers through their transformative digital strategies, SmartStream provides a range of solutions for the transaction lifecycle with artificial intelligence and machine learning technologies embedded - which can also be deployed in the cloud or as managed services.

As a result, more than 2,000 clients—including 70 of the world’s top 100 banks, rely on SmartStream Transaction Lifecycle Management (TLM®) solutions to deliver greater efficiency to their operations.

For more information about SmartStream, visit

SmartStream: Preparing firms as initial margin segregation becomes the new status quo

Financial institutions are in for a transformation as regulatory changes come in the next two years.

When examining the regulations about to come into force over the next two years, it might seem like only the biggest financial institutions will need to brace for the impact of stricter requirements surrounding initial margin. But even smaller firms would need to prepare for the regulatory changes, such as having third-party segregation for initial margin, as the targeting becomes more granular over the phase-in period.

“In the past, initial margin segregation used to be something that some parties would decide to do. Now everybody has to do it if you are doing OTC derivatives,” Jason Ang, programme manager for TLM Collateral Management at SmartStream, a global software and managed services provider, noting that it is more prudent to prepare early and avoid the crush of compliance demand expected in 2019 and 2020.

Initial margin concerns
Ang said that some clients that choose to do their own calculation of initial margins might be drawn to using the standard initial margin model proposed by industry body ISDA in order to reduce disputes. But to be able to do such a calculation, clients would need to generate sensitivities, which is where they could start engaging a provider like SmartStream who can help coordinate creating the sensitivities or running the calculation for them.

The whole process, which involves different parties, can become quite complicated and firms should not underestimate the time and resource requirements, said Ang. Delays can quickly add up given that parties often have to wait for another party’s action to move forward, so starting early provides the necessary buffers to ensure on-time compliance.

If companies that will be in scope in 2020 only begin working on compliance that year, Ang warns they run the risk of competing with other firms who might be doing it last minute. “There might only be a certain number of resources to serve that kind of volume. If you’re in scope in 2020, you should be starting the preparations sometime in 2019.”

More clients are also finding out that the responsibility of checking whether the tri-party custodian is doing the right thing still falls on the two parties. Ang reckoned that there were some clients who thought that long as those assets are allocated appropriately, it is the custodians who bore the bulk of responsibility for making sure the process is done smoothly and correctly.

“This is not immediately the case, which is why we felt we needed to build a module to be able to take the information from those custodians and use that and compare that with what we think is correct in our systems,” said Ang.

Automated compliance monitoring
SmartStream also provides increased convenience, speed and efficiency by automating client monitoring the proper fulfillment of collateral calls. Ang said most clients have shifted towards using an automated tri-party arrangement with the broker, who is given authority to figure out different assets on how to fulfill a collateral call. “However what we’re seeing now in the marketplace is that does not absolve clients of checking whether they did a good job or not” in selecting assets, he said.

If custodians make a mistake and choose an asset that is ineligible for the contract, it still falls on clients to flag the mistake so it could be corrected, which can be a tedious process. Ang said more clients have started to realise that it is still their responsibility to check that the custodian has correctly chosen eligible assets and have taken it upon themselves to raise concerns when ineligible collateral had been selected.

Given the increased workload for clients, SmartStream’s system eases the compliance burden by providing tools for automating the initial margin call process. The system also automates the custodian review and should there be a lapse, the client will be able to clearly communicate the regulatory or eligibility violation so the appropriate fix can be implemented. “What we’re doing with our system is to make sure that after we dealt with regulatory concerns, we now help deal with operational concerns,” Ang added.

For clients, Ang said the advantage is clear: leveraging on a well-built, proven system that has been further bolstered by the perspective of serving both buy-side and sell-side clients.

“We marry that perspective with our expertise as former practitioners, and then we come up with solutions so our clients do no have to go out there all individually themselves and get all this information and then figure things out.”

Over 1,500 clients, including more than 70 of the World’s top 100 banks, 8 of the top 10 asset managers, and 8 of the top 10 custodians rely on SmartStream’s solutions. For more information about SmartStream visit:

Connect Now

This question is for testing whether or not you are a human visitor and to prevent automated spam submissions.

Other Articles

SmartStream launch high performance, AI enabled platform to meet client demands for managing complex data

SmartStream Technologies, the financial Transaction Lifecycle Management (TLM®) solutions provider today announces the launch of TLM Aurora Universal Data Control - driven by client demand - it is the only solution of its type to match any reconciliations data, from basic to complex matching by enabling AI, machine learning and cloud-native technology.

SmartStream steps ahead with new industry digital payments solution

SmartStream Technologies, the financial Transaction Lifecycle Management (TLM®) solutions provider, announced the launch of TLM Aurora, the industry’s leading reconciliation platform.

Bringing automation and increased efficiency to post-trade processing in Asia

SmartStream’s post-trade processing solution eliminates downstream exceptions through enabling real-time processes based on verified data.

SmartStream reveal their latest API suite with a complete range of reference data services

SmartStream Technologies, the financial Reference Data Utility (RDU) solutions provider, today announces the launch of its Application Programming Interface (API) suite – for quicker access to services providing accurate data, with improved customer service, operational efficiency, greater agility and competitiveness. The new fully comprehensive API service will benefit financial institutions by saving huge amounts on infrastructure costs, as well as an affordable service which is straightforward to deploy.

SmartStream reveals new brand identity

This reflects the company’s mission to spearhead technological innovation.

Digital payments driving the trend in APAC market

As digital payments take the centre stage, the complexity of transactions is also increasing. Santosh Tripathy explains how providers can address these using SmartStream’s operational control platforms.

Digital payments automation: What now?

As digital payments push out cash amidst the pandemic, providers look to SmartStream Technologies, for an automation advantage. Santosh Tripathy talks about the backbone needed for would-be players.

How SmartStream's managed services is transforming banking in Asia Pacific

Managed services streamlines operations and cuts costs by eliminating manually intensive processes.

Asian banks to adopt cloud-based managed services for efficient back-office operations

Managing back-office trading processes are becoming more complex with the twin pressures of increasing regulation and reduced headcount, which requires banks to reexamine their operations, according to SmartStream’s global product manager of managed services Peter Hainz.

Banks embrace corporate actions automation with SmartStream's award-winning platform

When a European company was struggling with a corporate actions conundrum of spending four hours each day collating new event notifications that have been received into the organisation, it turned to SmartStream Technologies for a solution that would enable them to automate the painstaking process. The firm implemented SmartStream’s TLM Corporate Actions platform, which then drastically cut down the processing time compared to the previous manual system that was bogged down by an influx of printed SWIFT messages, fax messages, emails and Excel spreadsheet reports.

New technologies transform data validation and reconciliations in banking

AI and Machine Learning (ML) technologies improve operational efficiency and decision making for middle and back office.

SmartStream’s AI solution supports continuous streaming of reconciliations

SmartStream Technologies, the financial Transaction Lifecycle Management (TLM®) solutions provider announces the launch of SmartStream Air Version 4, which provides the continuous streaming of reconciliations using the latest AI cloud-native technology. The new version will manage large volumes of data in a variety of non-standard formats and structures, it will check for accuracy and completeness on a continuous basis, without the need to reload unmatched items.

SmartStream bolsters APAC team with two new hires to meet increasing demand for client support and delivery

SmartStream Technologies, the financial Transaction Lifecycle Management (TLM®) solutions provider today announces two senior appointments - Romain Rohee, Regional Head for Client Services and Delivery and Amol Deep, Delivery Engagement Director – both hires will strengthen the regional team in areas of solution delivery and client engagements.   Romain Rohee will lead and set direction on all product delivery, with a key focus on customer satisfaction and relationships across all stages of the client lifecycle. Prior to joining SmartStream, he was the APAC Head of Operations for ITRS Group and led their managed and professional services teams. Before this, he was at two other organisations managing process implementations and integration for Société Générale and Orsyp Group, globally. 

Addressing operational challenges in financial institutions through effective managed services

SmartStream Head of Business Development, Managed Services Mark Morris provided insights on the need to upgrade systems and create efficiencies to reduce costs and risks.

SmartStream steers new intelligent design for exceptions management

SmartStream Technologies, the financial Transaction Lifecycle Management (TLM®) solutions provider, today announces new intelligent exceptions management design for its cloud-native AI powered SmartStream Air solution – enabling the process of identification, prioritisation, allocation, and audit to be further simplified.

Understanding the benefits of a robust intraday liquidity management system

Managing an effective intraday liquidity system doesn’t have to be a tedious and drawn-out process.