BACKGROUND

Collateral is used across the financial markets in order to manage risk and exposure. A collateral provider and collateral receiver will agree upon the types of eligible collateral for their underlying transaction, which will be memorialized in the eligibility schedule. The rules of the eligibility schedule govern the relationship between the collateral provider and collateral receiver. It is critical that a collateral management service provider (e.g., various financial institutions, banks, etc.) manages and maintains eligibility rules per the client's agreement with their counterparty.

Unfortunately, historic collateral management applications are unintuitive to use, resulting in challenges with respect to a lack of intuitiveness regarding the terms of the eligibility schedule. Furthermore, data is historically fragmented and held in siloes, resulting in limited access by the collateral receiver, collateral provider and collateral management service provider to eligibility schedule data, which is of important in the time of a stressed market event.

SUMMARY

Embodiments are directed to a method and system for generating a collateral schedule and making the completed draft available to the parties of the collateral schedule through a platform that allows for ease of reviewing, amending, accepting and activating the collateral schedule. Further, embodiments are beneficial in that data in schedules can be accessed by the collateral receiver, collateral provider and collateral management service provider to eligibility schedule data.

Embodiments are directed to a method for providing automated collateral eligibility services implemented by one or more collateral management service (CMS) devices between a client and at least one other party. The method includes receiving a collateral eligibility schedule setup request from a client device, wherein the collateral eligibility schedule setup request comprises one or more attributes and one or more rules; initiating a current collateral eligibility schedule based on the received collateral eligibility schedule setup request; transmitting a notification to the at least one other party to review the current collateral eligibility schedule; receiving approval of the current collateral eligibility schedule from the at least one other party; and activating the approved current collateral eligibility schedule.

According to embodiments, the initiating the current collateral eligibility schedule can include manually setting up the schedule through an interface with the one or more CMS devices.

According to other embodiments, the initiating the current collateral eligibility schedule can include transforming a previously stored collateral eligibility schedule to populate an interface with the one or more CMS devices.

In embodiments, before transmitting a notification to the at least one other party, the method can further include storing the current collateral eligibility schedule.

In further embodiments, the method may include storing a plurality of line of business profiles accessible by the interface with the one or more CMS devices; and associating one of the plurality of line of business profiles with the client. The line of business profiles may include workflow requirements and eligibility criteria. Further, based upon the one line of business profile associated with the client, the method may further include one of: dynamically creating current collateral eligibility schedule in an interface with the one or more CMS devices; or transforming a previously stored collateral eligibility schedule to populate an interface with the one or more CMS devices.

In accordance with other embodiments, prior to receiving approval of the current collateral eligibility schedule, the method can further include at least one of: the client modifying the current collateral eligibility schedule via an interface of one or more CMS devices; and the at least one other party modifying the current collateral eligibility schedule via an one or more CMS devices.

According to still other embodiments, prior to transmitting the notification, the method can further include storing the current collateral eligibility schedule in at least one database accessible by the one or more CMS devices. The method may also include receiving a request from an application to identify stored collateral eligibility schedules associated with at least one position and at least one agreement data. The method can also include searching the at least one database accessible by the one or more CMS devices for stored collateral eligibility schedules associated with the at least one position and the at least one agreement data; and presenting search results listing the stored collateral eligibility schedules associated with the at least one position and the at least one agreement data. In further embodiments, the method can also include identifying eligibility and concentration limit constraints in the stored collateral eligibility schedules associated with the at least one position and the at least one agreement data listed in the search results.

In accordance with embodiments, the method can also include selecting one of the stored collateral eligibility schedules associated with the at least one position and the at least one agreement data listed in the search results; and transmitting the selected one of the stored collateral eligibility schedules associated with the at least one position and the at least one agreement data to the requesting application.

In other embodiments, the method may also include selecting one of the stored collateral eligibility schedules associated with the at least one position and the at least one agreement data listed in the search results; modifying the selected one of the stored collateral eligibility schedules associated with the at least one position and the at least one agreement data; and transmitting the modified selected one of the stored collateral eligibility schedules associated with the at least one position and the at least one agreement data to the requesting application.

According to still other embodiments, only one of the client or the at least one other party can access the stored current collateral eligibility schedule in at least one database accessible by the one or more CMS devices at a time.

Embodiments are directed to a system for providing automated collateral eligibility services via one or more collateral management service (CMS) devices. The system includes a processor; and a memory including instructions that, when executed by the processor, cause the processor to perform operations including: receiving a collateral eligibility schedule setup request from a client device, wherein the collateral eligibility schedule setup request comprises one or more attributes and one or more rules; initiating a current collateral eligibility schedule based on the received collateral eligibility schedule setup request; transmitting a notification to the at least one other party to review the current collateral eligibility schedule; receiving approval of the current collateral eligibility schedule from the at least one other party; and activating the approved current collateral eligibility schedule.

According to embodiments, the initiating the current collateral eligibility schedule can include one of: manually setting up the schedule through an interface with the one or more CMS devices; or transforming a previously stored collateral eligibility schedule to populate an interface with the one or more CMS devices.

Embodiments are directed to a non-transitory computer-readable medium configured to store instructions for implementing a method for providing automated collateral eligibility services via one or more collateral management service (CMS) devices. When executed, the instructions cause a computer to: receive a collateral eligibility schedule setup request from a client device, wherein the collateral eligibility schedule setup request comprises one or more attributes and one or more rules; initiate a current collateral eligibility schedule based on the received collateral eligibility schedule setup request; transmit a notification to the at least one other party to review the current collateral eligibility schedule; receive approval of the current collateral eligibility schedule from the at least one other party; and activate the approved current collateral eligibility schedule.

In accordance with still yet other embodiments, to initiate the current collateral eligibility schedule, the instructions cause the computer to one of: manually set up the schedule through an interface with the one or more CMS devices; or transform a previously stored collateral eligibility schedule to populate an interface with the one or more CMS devices.

