Dutch fund stumps up for collateral risk solution

In a sign of the paranoid times, huge Dutch pension administrator Mn Services has installed a collateral management offering, which forms part of a counterparty risk management suite tailored for this environment by Omgeo.

Mn Services, which manages 56 billion euros on behalf of 1.1 million individuals and 33,000 employers and is owned by two local pension funds, has installed Omgeo’s Protocoll software, which claims to provide an end-to-end, event-driven collateral and margin management tool allowing clients to identify, negotiate and satisfy their daily margin calls.

Omgeo, a vendor into the post-trade administration space, claims Protocoll gives its users insight into their firms’ exposures and risk profiles, handling margin requirements across OTC derivatives, repos, securities lending, leveraged trading, emerging markets and loan facilities.

The head of risk control at Mn Services, Muhittin Elvan, said Protocoll “not only identifies collateral discrepancies, but gives transparency into those exceptions to highlight which details need to be resolved between parties”.

MnServices, which is owned by Dutch metalworker pension funds PME and PMT, recently said it expected crisis-led consolidation in the Dutch pension fund market would create outsourcing opportunities that could see it lift its funds under management by up to 15 billion euros in the next two years.