Helen Nicol
Lombard Risk
Lombard Risk’s Colline platform has gone from strength to strength in the past year. Product director Helen Nicol reveals the secret to its success

The list of clients for Lombard Risk’s Colline platform is on the rise. What’s the formula to this success?

The introduction of regulation for the uncleared over-the-counter (OTC) market caused many organisations to review their operational processes and consider what cost efficiencies could be found. Colline’s cross-asset functionality, on a single platform, which can be installed or hosted in the cloud, has proven to be beneficial in creating straight-through processing gains, silo reductions and infrastructure savings.

By working closely with our client base, regulators and major market participants, Lombard Risk continually adds relevant, critical functionality. The Colline solution and its team of dedicated collateral professionals strive to support its users with their needs of today as well as their requirements for tomorrow.

Lombard Risk is also adding on new features to Colline, such as a new exchange-traded derivatives module. What are the drivers behind this?

Our vision is to achieve enterprise wide-collateral and margining across all asset classes. Colline was originally developed as an OTC platform, but extended to include repo, OTC clearing, securities lending, and exchange-traded funds clearing. The addition of the exchange-traded derivatives (ETD) module was an obvious extension.

With the move towards more regulation in the uncleared OTC space, many clients, particularly on the buy side, were expressing interest in an ETD offering and asking whether we were prepared to support their requirements as they consider both OTC clearing and ETD offerings. The release of this module in Colline V15, which was delivered in January 2017, has seen several clients begin implementation.

Where will Colline going from here? Are new markets or services on the horizon?

We have an aggressive plan for delivery of additional functionality across all asset classes over the next 18 to 24 months as more regulation comes into force.

The deadline for updating master securities forward transaction agreements, due to stricter controls around to-be-announced trade margining, is scheduled for December 2017, while the second Markets in Financial Instruments Directive deadline is scheduled for January 2018.

As such, clients are requesting support in streamlining and automating processes as well as insisting on a greater level of interoperability among providers.

Additionally, there are many new participants in the market, especially multinational corporations that are now subject to these regulations. As a result, volumes continue to increase and the need to focus on control and operational efficiencies continues.

What are your clients highlighting as the biggest challenges they face?

Undoubtedly, regulation and the burdensome operational impact with the associated documentation requirements are creating the biggest challenge at present. This is true for buy-side clients that are still in the midst of putting the appropriate legal documentation in place.

Other challenges include streamlining of workflows to assist with increased volumes and complexities and ensuring the end to end connectivity for daily activities.

Are tight regulatory deadlines coupled with back-office budget cuts to be the primary reason for the rise in interest for Colline’s services?

It’s certainly a major factor, however, we have also seen an increase in the number of organisations looking to eliminate silos and provide consistent margining functionality to their own clients and counterparties—hence the need for a single enterprise-wide platform supporting multiple asset classes.

Colline’s modular approach enables clients to select the functions they require and adapt as their business grows or changes.

The latest interviews from Securities Lending Times
The latest features from Securities Lending Times
Experts discuss the current state of the European securities lending market
Senior business analyst Gilbert Scherff and securities finance and collateral management marketing director Martin Seagroatt break down what will be required of SFTR and explain how Broadridge Financial Solutions can help
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
Getting to the final technical standards may indeed just mark the end of the beginning, but it is a significant milestone on this particular road. David Lewis of FIS Global maps out the rest of the journey to be made
SIX Securities Service—through SIX Repo—is developing a new methodology based on the seamless sourcing and pooling of collateral. Head of repo and securities finance Nerin Demir explains
Calypso Technology pits the viable options for a quick fix against implementing a strategic long-term solution for growth, and investigates the possibility of combining these options for the optimal securities finance solution
Matt Wolfe, vice president of new products and business development at OCC, explains how the central clearer is enhancing its stock loan programme to better serve the market
Rob Chiuch and John Templeton of BNY Mellon Markets discuss the potential impact of allowing equities to be used as collateral in the US
Tracey Adams of Lombard Risk examines examples of three challenges faced by market participants caught up on the first wave of SIMM
Country profiles
The latest country profiles from Securities Lending Times
Being an exciting emerging market is all well and good, but how long can that status really apply before interest wanes? India is doing its best not to find out
Hugh Leonard, director of repo sales at Australia and New Zealand Banking Group, explains how the Australian market has excelled in recent years
Asset Servicing Times

Visit our sister site
for all the latest asset servicing news and analysis

Securities lending is in a strong place in Australia. Dane Fannin, head of capital markets in the Asia Pacific at Northern Trust, explains the available opportunities
Federico Ortega Gilly of Mexico’s Nacional Financiera explains why his country’s securities lending market is ripe for foreign investment
Russia’s National Settlement Depository has had a busy year making its securities finance market more robust and attractive to outside investors. The CSD’s Alina Akchurina explains the innovations being implemented
South Africa’s securities lending industry is on the verge of embracing a modern T+3 settlement cycle that could boost the country’s market
Experts on Canada’s securities lending industry discuss the market’s qualities compared to others, finding it to be a strong source of HQLAs
A difficult end to 2015 has not deterred securities borrowers and lenders in Asia, where certain markets enjoyed significant growth and offered new opportunities