The new services will enable the clients to receive up-to-date reporting on the location and status of all collateral movements regardless of where the assets are held.
According to the State Street, the Collateral Tracking service expands the traditional core custody function of acting on direction from the asset manager to move collateral, including cash or securities, in and out of an account.
The newly updated service automates a previously manual process, that required to contact asset owners or investment manager individually to determine the outstanding collateral at any point in time.
State Street said that using the new service, clients can send their collateral instructions to its collateral tracking hub, which automatically initiates the process of tracking the status and location of all outstanding collateral.
In addition, the service’s fully customizable reporting allows clients to schedule reports to run systematically or upon request, using any combination of date range, advisor, client, counterparty, fund, or product type.
State Street Global Product Management executive vice president and head Patrick Centanni said that the Collateral Tracking service provides clients with settlement status updates and event monitoring information to increase transparency and mitigate counterparty risk exposure.
