U.S. Bank (Minneapolis) has selected Rockall Technologies' (Dublin, Charlotte, N.C.) Systematic Tracking of Collateral (STOC) solution for enterprise-wide monitoring and evaluation of marketable securities that collateralize credit facilities and commitments made by several business lines within U.S. Bank. These include the Private Client Reserve in the Wealth Management Group, National Corporate Banking Broker Dealer division, and The Private Client Group.
U.S. Bank ($266 billion in assets) determined that STOC met its requirements for increased collateral control and regulatory compliance by: daily tracking of marketable securities' prices; automating comparisons of exposure to collateral value; ability to handle securities and fixed asset (e.g. real estate) collateral; reducing risk of loss from under-collateralization through systematic monitoring including the use of automated alerts on price movements and margin requirements; improving the process for quarterly reporting required by Federal Reserve Regulation W, Section 23A; and providing fully integrated workflow for the resolution of key exceptions such as margin calls/covenant breaches.
"We needed a single, automated platform to track rapid price changes of our pledged securities in a timely and consistent manner," said Mark Jordahl, president of the U.S. Bank Wealth Management Group, in a statement. A primary selection criterion was STOC's ability to fully interoperate and support all interfacing applications, existing technology infrastructures, and enterprise standards, according to Rockall Technologies.