London-based Software-as-a-Service (SaaS) firm CloudMargin announced record revenue and client growth for the fiscal year ending on March 31. CloudMargin is the creator of the world’s first and only collateral and margin management solution native to the cloud.
The company has continued to add new clients interested in managing their collateral for cleared over-the-counter (OTC) products and exchange-traded derivatives (ETDs), in addition to its longstanding work with clients on uncleared OTC, repo, and Stock Borrowing and Lending (SBL) products. The firm’s subscription growth for the fiscal year totaled nearly 40%, with significant client growth in particular among asset managers globally.
The challenging environment of market volatility, inflation and rising interest rates has put a strain on collateral teams at buy- and sell-side firms of all sizes. Stuart Connolly, CEO of CloudMargin, said that the company is seeing considerable inbound interest from firms recognising they can use their platform to centralise all assets and data. Doing so will enable them to optimise their collateral usage, drive down funding costs, and address collateral scarcity.
CloudMargin’s recent enhancements to its optimisation functionality give clients the tools they need to make smart decisions quickly and put their collateral to work in the most efficient way possible. This capability, along with the company’s unmatched automation and continuous platform enhancements, can result in immense savings, along with better-informed trading decisions, for institutions.
Many clients have reported cost savings of up to 70%, which has been crucial as rising interest rates are increasing funding costs. Through the CloudMargin platform’s microservices architecture, services expand and contract automatically by load, ensuring stability irrespective of how much volatility there is in the market.
The platform facilitates exception-based straight-through processing by centralising data, providing a consolidated view of obligations, inventory, and associated eligibility to meet collateral obligations. It connects to a wide range of industry utilities and optimises collateral allocation and funding firm-wide.
For the calendar year ending on December 31, CloudMargin’s platform saw $1.5 trillion exchanged in collateral, helped clients with more than 800,000 margin calls, managed more than $750 billion in daily inventory loaded on the platform, was accessed by clients in more than 50 countries, and introduced nearly 900 enhancements to features and functionality.
CloudMargin CEO Stuart Connolly said that “Recent enhancements to our optimisation functionality give clients the tools they need to make smart decisions fast and put their collateral to work in the most efficient way possible. This capability, along with our unmatched automation and continuous platform enhancements, can result in immense savings, along with better-informed trading decisions, for institutions.”
CloudMargin’s growth has been impressive, and its subscription growth shows the strength of the firm’s cloud-based collateral and margin management solution. The company’s innovative platform provides clients with the tools they need to optimise their use of collateral and drive down funding costs, making it an essential partner for firms looking to streamline their operations and improve their bottom line.