New York's Soros Fund Management has licensed Toronto-based Algorithmic's Algo Collateral software to manage its OTC derivatives margining processes.
Algo Collateral is an enterprise-wide solution designed to automate collateral activity and reduce credit and operational risks associated with margining.
Soros has also purchased Algo Collateral's asset management module that allows in-depth analysis of credit exposures to counterparties, custodians and security issuers across all products by industry, country, credit rating and product type.
The deal marks one of the biggest hedge fund clients for Algo Collateral. Michael Zerbs, COO, Algorithmics, says buy-side institutions like Soros need scalable collateral management systems in place to mitigate credit risk.
"In particular, Algo Collateral's asset management module will give Soros greater flexibility and transparency when managing their collateral pools and optimising their assets," he says.