Mizrahi Tefahot Bank Streamlines Collateral Management with Bloomberg

Mizrahi Tefahot Bank, a leading bank in Israel, has adopted Bloomberg’s Multi-Asset Risk System (MARS) Collateral Management, a solution that helps financial institutions comply with evolving collateral regulations.

Under the uncleared margin rules, firms need to value their derivative contracts with each counterparty, calculate the amount of collateral required, agree on the value, make or receive the payments daily, and update their records much more frequently than ever before. The requirements for firms to exchange initial and variation margins were agreed by global regulators and are being phased in.

“Mizrahi Tefahot is at the forefront of OTC operations”, said Shlomo Bitton, Head of OTC Derivative Operations at Mizrahi Tefahot Bank. “Bloomberg’s powerful solution for collateral management provides us with the data and functionality we need to manage margin requirements efficiently and reduce operational and credit risk.”

Siti Eschrich, Bloomberg’s Collateral Management Product Manager, said: “To help our clients comply and manage risk in an efficient manner, MARS Collateral Management provides an integrated and transparent workflow including data and analytics, such as independent valuations and initial margin calculations using ISDA’s Standard Initial Margin Model (SIMM).”

In November 2019, Bloomberg’s MARS Collateral Management won the Risk Markets Technology Award for Collateral management and optimisation product of the year. According to the judges “Bloomberg has created a well-designed collateral management system and service. The administration, workflow, data, pricing, analytics, regulatory compliance and integration are high-quality and comprehensive.”

MARS Collateral Management has built-in portfolio reconciliation tools to communicate and resolve disputes. It calculates, aggregates and displays margin calls across products and legal entities and generates independent derivative and collateral valuations and liquidity risk scenarios. It can be used to manage the day-to-day margin call process, including sending margin calls, booking collateral, and managing interest payments. Clients can track their exposures, as well as collateral positions and agreement terms in real-time.

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About Mizrahi Tefahot Bank Ltd.
Mizrahi Tefahot is Israel’s third largest bank based on value of assets and offers a complete range of international, commercial, domestic and personal banking services. Its total assets as of September 30, 2019 amounted to USD 76.68 billion. Mizrahi Tefahot Group operates through 197 branches in Israel (including 50 branches of its subsidiary, Bank Yahav, which primarily specializes in services to government and public employees), and its affiliates in Israel and abroad, with branches or representation internationally in five countries in Europe and the Americas.

Mizrahi Tefahot’s controlling shareholders currently hold about 43.91% of its shares, with the remaining outstanding shares owned by the public who hold shares on the Tel-Aviv Stock Exchange.

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