A properly structured sweep repo program helps banks build on their existing client relationships by offering competitive rates on fluctuating corporate cash balances that are backed by US Government or Agency collateral.

Without offering a sweep repo service these corporate funds would either earn no interest or necessitate transferring some or all of the cash into a separate investment account – often outside of the bank, which can open up the possibility of risking the wider commercial relationship.

A sweep repo program also provides banks with a daily pool of funds that can be utilized for fee and spread income.

The paragon Automatic Collateral Assignment (ACA) module automates much of the evaluation, collateralization and processing of a sweep repo service, making it competitive, scalable and with minimum of operational risk.

Its functionality for complex sweep repo programs includes:

  •     Automated sweeps interfacing
  •     Demand Deposit Account (DDA) link for transfers & updates option
  •     Customer and bank preference hierarchies
  •     Real-time online collateral and availability blotter
  •     Automatic collateral assignment

Read more about how paragon’s specialist modules have been developed to support specific trade services as fixed income service offerings, instruments and regulatory requirement have all evolved.