Cross-Asset Functionality Key Driver of Growth
LONDON, 28 July 2022 – CloudMargin, creator of the world’s first and only collateral and margin management solution native to the cloud, announced today a number of significant achievements over the quarter ended June 30, including adding seven new bank clients globally, further enhancing the ability to centralise data and optimise collateral via the CloudMargin platform, and hiring a key new member of the sales team in Europe.
The strong growth in bank clients comes on the heels of the company’s best revenue year in the firm’s history, for the fiscal year ending March 31. The CloudMargin user base grew 45% from April 2021 through March 2022 and 25% more by the end of June. The majority of these users have been at large regional banks and buy-side firms.
With a backdrop of rising inflation and challenging market conditions, banks are increasingly turning to CloudMargin to drive increased operating efficiency via a single collateral process across all traded products. The platform provides banks with a consolidated view of their obligations, along with an enterprise-wide view of their inventory and associated eligibility to meet collateral obligations, giving them the capability to optimise their collateral allocation and funding across the entirety of the business.
CloudMargin CEO Stuart Connolly said: “In today’s volatile markets, banks are looking for centralisation of their collateral pools and a singular approach to optimisation, across asset classes. As we have increased our capabilities for the sell side and regional banks over the past few years – in addition to our long-standing service to the buy side – we’re very pleased to be a go-to resource for banks large and small as they seek to drive financial efficiencies by breaking down the traditional bifurcated approach to collateralisation. Our new fiscal year is off to a very strong start following our best year to date, and we look forward to continuing to grow in all regions as the year progresses.”
CloudMargin has also added Michelle Burridge to its sales team in Europe. Burridge, who has extensive experience in securities finance, joined from FIS, where for seven years she served as a Senior Business Analyst for its Apex securities finance arm.
David White, CloudMargin Chief Commercial Officer, said: “Michelle’s hire is another key step in our strategy to broaden our expertise alongside the development and build-out of our product.”
Continuation of the firm’s growth is also expected as a steady stream of firms will breach Initial Margin (IM) exposure thresholds and be required to make operational and technology changes to comply with the Uncleared Margin Rules (UMR) in future years. From a recent poll the firm conducted, 52% of the participants stated they were likely to be “slow to breach” the IM threshold but likely to do so at some point in the future (i.e., one to two years). Another 27% indicated they expected to be “quick to breach” the threshold (i.e., under a year).
In addition to product enhancements, CloudMargin also recently established a connection with the triparty services from BNP Paribas Securities Services, adding to its list of 60+ custodians and triparty agents that already connect to the platform. Approximately 40% of all CloudMargin clients in scope for UMR are using the firm’s triparty and custodian SWIFT services.
The CloudMargin platform powers the industry, not only through the firm’s direct and growing client base but through strategic partnerships the company has forged with leading industry infrastructure providers, including Acadia, Finastra and IHS Markit (now part of S&P Global).
About CloudMargin
Headquartered in London, CloudMargin created the world’s first cloud-based collateral management workflow tool, which has earned more than 20 industry awards and honours since 2015 for innovation and best-in-class technology. The firm’s Software-as-a-Service (SaaS) model helps leading sell-side and buy-side financial institutions globally – including banks, brokerage and asset management firms, pension funds and insurance companies meet time-critical regulatory deadlines and reduce dramatically growing costs associated with collateral requirements. CloudMargin delivers its robust, secure platform directly as well as through outsourcers and major industry service providers. Partner to and owned by the market, CloudMargin’s strategic investors include Deutsche Bank, Citi, Deutsche Börse, IHS Markit and Jefferies, as well as venture capital firm Illuminate Financial. CloudMargin was the first collateral management solution provider to be a member of the SWIFT network, facilitating straight-through processing through settlement. For more information, visit www.cloudmargin.com.
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