Collateral Reporting – A European Central Bank

Project Background

A central bank in Europe contacted PaceMetrics with three key concerns:

  • Assurance for Risk and Compliance managers that their collateral reports were based on valid and accurate data
  • Full transparency on the origin of all reporting data and user actions
  • Ability to manage the solution in-house, including changes to the data model and the data source configurations


PaceMetrics provided the client with an automated solution, Assure, which manages their data risk and displays the information in a unified dashboard. Assure incorporates the following features:

  • Validates daily holdings data collected from multiple collateral managers (tri-party agents)
  • Cleanses the data and enriches related securities with reference data from market data vendors
  • Tests the data and provides integrated workflow to enable rapid handling of data exceptions
  • Uses a traffic light system to alert operators to what went wrong and why it went wrong
  • Publishes the cleansed data to the client’s reporting data warehouse


The PaceMetrics solution realises the following benefits to the client:

  • The client’s back office system now processes reliable daily holdings valuation data for management reporting and risk assessment
  • Provides full visibility on the client’s collateral reporting data, having checked it for accuracy and completeness
  • Incorporates a strong audit function that provides the client with full transparency on the origin and manipulation of the data
  • Monitors collateral data in a dashboard view, minimizing manual intervention by requiring operator action only when exceptions are detected
  • Minimizes costs by validating data before querying market data vendors and by enhancing the clients self-sufficiency for future maintenance