Avaloq and Comyno have successfully launched a pre-integrated securities financing solution, offering comprehensive collateral inventory overviews, easier access to liquidity and enhanced risk management.

The new solution, which is fully integrated into the Avaloq platform, broadens access to securities lending business and helps firms fulfil their collateralization requirements. It has attracted strong interest from investment companies, including Vontobel, and aims to create an interconnected financial market and improve access to liquidity, while simplifying compliance with Securities Financing Transaction Regulation (SFTR) and Uncleared Margin Rules (UMR).

Avaloq launched this solution as part of a joint innovation project with Comyno, a Frankfurt-based software specialist in the securities finance business. Comyno’s multi-entity software C-One offers seamless access to liquidity by creating large asset pools across different financial institutions. It enables firms to initiate trades with each other directly while providing integrated processes for securities lending requests, negotiations and direct integration into the Avaloq platform.

The new solution will deliver detailed and timely reporting on collateral valuation, including daily fluctuation data, which is essential for meeting SFTR and UMR requirements. It will enable counterparties to report transactions such as repurchase agreements, securities lending and related collateral to trade repositories that are recognized by the European Securities and Markets Authority (ESMA), as required by SFTR. At the same time, the solution will calculate margin exposure and changes in collateral valuation to enable firms to cover initial margin requirements, in compliance with UMR.

Avaloq ensures standardized connectivity with its core platform for efficient order processing, lifecycle management and integrated reporting, complemented by Comyno’s intuitive user experience and interaction models. 

Martin Greweldinger, Group Chief Executive Officer at Avaloq, said: “For over 15 years, we have supported Vontobel with core banking technology on Avaloq cloud, banking operations outsourcing based on business processes as a service, and now with the development in securities financing together with Comyno. With this project, we are helping to create an even more stable and liquid financial marketplace while ensuring that our clients comply with regulations across multiple jurisdictions. We are proud of our commitment to innovation, investing 25% of our annual software revenue into research and development. We are also firmly committed to our role as an orchestrator of the financial ecosystem, with an extensive network of specialized partners such as Comyno.”

Frank Becker, COO and Head of Sales at Comyno, said: “Comyno is pleased to partner with Avaloq on this forward-thinking securities financing solution. Our expertise in crafting intuitive software solutions for the securities finance market, especially with our C-One platform, aligns perfectly with the project's goal to foster a more interconnected and liquid financial ecosystem. This collaboration highlights the strength of Avaloq's robust core banking platform in tandem with our C-One frontend, forming an exemplary union that promises to redefine the market's infrastructure and operational efficacy.”