Client Summary

Client type: Regional Bank

Problem: Multiple counterparties & Clearing Brokers who relied on email for margin calls created email-intensive workflows leading to bottlenecks and increased risk.

Solution: Leveraged OSTTRA triResolve Margin’s integrated artificial intelligence (AI)-generated summaries and email automation to remove email complexity.

The problem: The “inbox burden” of manual margin calls

Despite the industry shift toward straight-through processing (STP) using Acadia messaging, many firms still manage a portion of their collateral workflows via manual email correspondence. While the client already used Acadia messaging with their larger counterparts, the fact that many of their counterparties were not in the Acadia network forced them to rely on email. This created several critical challenges:

• Operational latency: Users spent too much time waiting for emails from counterparties. This required them to monitor two systems (margin call dashboard and email inbox), read counterparty email correspondence and cross-reference attachments to identify counterparty call details.
• Manual data entry risks: Key data points – such as agreed amount, pledge details (including asset type, currency and notional), along with settlement dates – had to be manually extracted from emails and typed into the platform, a process prone to human error.
• Lack of auditability: Without a centralised view of communications, tracking the history of a dispute or a collateral proposal required a tedious manual reconstruction of email chains.
• Fragmented data: Margin calls lived in one system, while the confirmation of the margin call negotiation was buried in disparate email threads.

The solution: Intelligent automation and AI integration

To modernise their operations, the firm adopted OSTTRA triResolve Margin’s new AI-powered email automation features. This solution transforms the inbox from a manual hurdle into a streamlined, integrated component of the collateral workflow.

How the AI automation works

When the client initiates a workflow – such as sending a margin call or interest statement – the system is able to automatically track the counterparty reply:

1. Automatic matching: The system can instantly link a counterparty reply to the action initiated by the user.
2. AI analysis: The AI analyses the content of the email, including replies and collateral proposals, to determine the counterparty’s intent.
3. Embedded email thread: The entire email thread is displayed directly within the relevant screen of the OSTTRA triResolve Margin platform.
4. Dashboard monitoring: Monitor the state of calls in the dashboard to instantly know if an email has been received.

Key Benefits

• Integrated email threads: The platform now provides a single view of margin communications. Users no longer switch between their email client and the margin call dashboard, and the full history of correspondence is visible alongside the margin data.
• AI-generated summaries: The system provides clear summaries of counterparty responses (e.g., “Agreed” or “Disputed”). This allows users to understand the status of a call at a glance without reading through email exchanges.
• Smart pre-population: The AI extracts critical data – amounts, currencies, and dates – directly from the email text. It then suggests key actions and pre-fills the required fields, drastically reducing manual entry and the associated risk of error.
• Exceptions-based management: By automating the routine parts of the email exchange, users can pivot from data entry to exception management, focusing only on complex disputes.

Verification and security

While the AI provides a high degree of automation, the client maintains overall control. The system suggests actions, but users perform a final visual confirmation against the displayed thread before finalising any booking.

Furthermore, the solution adheres to the highest security standards:

• No client data exposure: Data is never shared with external vendors for AI training.
• Strict governance: The framework is built on rigorous internal policies, ensuring that the firm’s data remains private and secure while benefiting from the latest in machine learning.

The result

By moving away from manual inbox management and leveraging AI-driven insights, the firm has achieved a higher level of STP. They have eliminated the need for manual data entry, reduced the time taken to agree on margin calls, and gained total transparency over their counterparty communications – all within a single, secure dashboard.

To learn more about our Collateral Management solution, click here or contact us at info@osttra.com.