Credit risk has become a vital concern after the changes seen in the global financial markets, and collateral management is currently a key issue. The absence of an appropriate system significantly increases operational risk and time employed in collateral administration due to the need for manual processes. Automation addresses aspects such as liquidity management, portfolio reconciliation and funding costs management. A significant cost reduction is also possible by, firstly, optimising the securities issued as collateral and, secondly, improving with the right tools the efficiency of the teams involved.

Multiple-entity collateral management

2Cover® is an application designed to manage your collateral, both in cash and securities, with each of your counterparties. The tool created by Optimissa provides margin call management, customised exposure reporting and end-to-end straight through processing. It ensures delivery of the cheapest collateral based on the criteria defined in the agreements, minimising opportunity cost.

Front office and back office connectivity

The design of 2Cover allows for streamlined workflows. The allocation algorithm in the front office module optimises the use of securities available in your collateral inventory. Once margin call calculations take place, collateral payment or collection orders are sent to the back office module.


· Trade reconciliation
· Margin call calculation
· Agreement storage and management
· Workflow management
· Funding cost calculation
· Custom reports and automated scheduled reports
· Seamless integration with external systems


· Collateral monitoring: transactions, collateral positions and agreement conditions.
· Tailored to your workflow
· Enhanced securities allocation for each counterparty
· Operational risk reduction
· Resource optimisation and cost savings

Easy-to-read and exportable information

The Home screen shows the data for each agreement uploaded by the user. The margin call will be calculated from the rules set up for the agreements. The simulation tool can be used in order to optimise the payment made for an agreement according to the specified filters. You can always contact us for further information.


Back to Front Collateral Management

Implementation of 2Cover in a Spanish retail bank with headquarters in Madrid. October 2012.


Established as one of the main retail Banks in the national scene, the entity with which we worked on this project has been placing in recent times an outstanding effort in the development of its private banking line of business. The bank has been able to successfully overcome every management and regulatory change it has faced since it opened, supported by a firm policy of investing in technology and innovation.


Since the client was subject to the EMIR and Basel regulations, which were designed to minimise credit risk and increase stability in the financial markets, the requirement to manage collateral during its lifecycle became a key priority. A dedicated team that would perform this function was essential.

Although collateral management was initially regarded as a back office task, this has now changed. This is mainly due to a significant growth in the use of securities as a guarantee, a task falling under the responsibility of the front office.

It was the demand on front-to-back resources that emphasised the need to implement an optimum system for collateral management.


There were two main requirements for the collateral management solution that was to be implemented in this bank. Firstly, the efficient management of the agreements and the collateral lifecycle. Secondly, it was imperative to reduce the cost of collateral allocation through an optimisation engine that had to be integrated in the workflow.

Additionally, the application had to be fully integrated with the front office and back office systems in use.


The implementation of 2Cover has allowed the client to minimise the resources allocated to collateral management, as the system brings substantial speed to the negotiation and settlement processes. Collateral allocation has also been enhanced, based on the various collateral agreements signed within the entity, making 2Cover a key management tool for the front office.

The impact of the implementation in the client’s business flows has been minimal, as 2Cover’s integration layer has permitted a fast integration with the systems in use.

Two years after 2Cover’s implementation, our client is still satisfied with the results achieved. The management team highlights the knowledge Optimissa has demonstrated on the subject, which had been acquired over the years in related projects.

Optimissa 2cover


Brochure with information about 2Cover®

Case Studies

· Back to Front Collateral Management

For more information about 2Cover®:

UK: +44 (0)20 3009 3027

Spain: +34 91 640 4659


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