The provider of collateral management and regulatory reporting solutions, which last month announced a collaboration with SmartDX documentation solutions provider Smart Communications, has announced a similar collaboration with Elixium, which runs an electronic collateral marketplace.
Lombard and Elixium will develop an integrated solution for repurchase agreements (repo) trading and collateral management.
The new offering will hook-up Elixium with the Lombard Risk cross-asset collateral management solution, COLLINE, to provide market participants with collateralised liquidity and a complete end-to-end automated repo trading and margin call management system.
Collateral management is simply the process of monitoring, tracking and valuing the funds put up as collateral for a trade.
Lombard said some of the biggest obstacles faced by institutions using repos are the complexity of managing product silos across multiple information technology systems and a lack of technical integration.
The cloud-based solution Lombard and Elixium are developing will solve these problems by allowing users to benefit from access to Elixium's all-to-all multi-currency/jurisdiction trading functionality and COLLINE's multi-asset cross-border collateral/margin management solution.
"The Elixium partnership represents an innovative way to utilise technology to achieve added liquidity within the repo market by enabling true end-to-end collateralisation, allowing firms to better sense, react, and continuously learn from their activities in the market," explained Helen Nicol, global product director of collateral solutions at Lombard Risk.
Nick McCall, the chief executive of Elixium, said the partnership with Lombard would enable Elixium to provide market participants with a complete end-to-end, automated collateral management and execution service.