Trade Finance and Reinsurance

“If the ship ever sinks, it is important to know if you are still carrying any cargo and whether it is buoyant or not” (SBSA). At Rockall we understand the complexities of trade and commodities finance. Financial risk management is important and we work with banks in managing their collateral to best practice standards which therefore maximizes the capital benefit for the bank and minimizes loss for shareholders. We provide a complete banking solution and the tools needed to understand the collateral in various jurisdictions. STOC addresses this challenge through the management of the following:

FEATURES

FEATURES

  • Letters of credit
  • Facilities (limits, exposure)
  • Commodities
  • Physical movement and documentation
  • Sale and purchase
  • Automatic pricing
  • Collateral (inventories,receivables)
  • Reduces operational risk
  • Improved quality of collateral
  • Valuation tracking
  • Better informed Lenders and group credit
  • Improves customer experience and opportunities
  • Faster disbursement/ available equity/ immediate information
  • Streamlines costs
  • Standard processing
  • Improved productivity

COLLATERAL DEFICIENCIES

COLLATERAL DEFICIENCIES

  • Margin calculations
  • Limit monitoring
  • Position views
  • Communication (Email/Fax)
  • Improved controls
  • Track position/ risk in participation agreements

OVERALL RISK

OVERALL RISK

  • Portfolio view
  • Concentration
  • Alerts
  • Aggregation
  • Portfolio/ client/ subsidiary rolled up view
  • Compliance and regulatory reporting

KEY FEATURES

KEY FEATURES

  • Client profiling - Financial, credit rating, contacts, service providers and documents.
  • Facilities, limits and exposure records and monitoring.
  • Track position/ risk in participation agreements
  • Inventory and receivables collateral
  • Manages legal and participation agreements and asset distribution
  • Overall exposure/ stress testing
  • Legal certainty over collateral held
  • Mark to market commodities and securities collateral management valuation
  • Reduces poor quality, inconsistency and improves efficiency.
  • Achieve real time management of margin calls, concentrations and watch lists.

FUNCTIONS

The STOC system addresses the features discussed above using the following modules:

STOC - Data Manager

  • STOC takes data feeds from customer systems, trade systems, pricing, foreign exchange and credit rating.

STOC - Calculator

  • Existing collateral is priced internally or via an external market source (e.g. LME, CBOT)
  • Overall position is calculated using the trade exposure

STOC - Rules Engine / Alert

  • A highly user configured system which allows a bank to identify the types of activities it wants to monitor
  • Collateral deficiencies
  • Maturing agreements
  • For matching cases an alert and notification is generated
  • The system takes care of related alerts that may be active

STOC - Workflow

  • A user configured system determines how alerts and notifications are formed and routed
  • An alert can be formed as an email, an internal STOC workflow task, or a task prepared for another workflow tool.
  • Correspondence
  • Escalation

Sectors:

Retail and Commercial Wholesale Trade Finance & Reinsurance Capital Markets

System Screenshots:

Fig. 1 Transactions: (Click images for large version)