Segregation

The Business Problem

Wall Street broker-dealers manage an enormous inventory of securities, some of which are owned by the firm and some of which are held on behalf of clients. This inventory is a valuable asset and can be used to generate revenue. To generate revenue from available inventory, a firm may lend securities to various counter parties, or use some of this inventory as collateral to borrow cash.

A number of factors govern inventory usage decisions, including regulations in various markets, firm priorities, and the contractual relationship between firm and client. Broker Dealers need systems that can optimize the decisions they make about how to use available inventory.

Where Galatea Fits

Galatea implements custom algorithms for clients that optimize the availability of securities for lending or use as collateral.  The solution is flexible enough to accommodate changing regulations and firm priorities and can be configured by business users.