CloudMargin

About CloudMargin

CloudMargin was established in 2014 by a team of professionals with deep experience in collateral management and capital markets, including Stuart McHardy, Edward Boggis-Rolfe, and Andy Davies. The founders identified a market need for a more efficient and accessible alternative to the costly and cumbersome collateral management solutions that were prevalent at the time. This led to the creation of the world's first cloud-native collateral management workflow tool. Stuart McHardy, one of the co-founders, brought over 20 years of industry experience from leadership roles at J.P. Morgan, Northern Trust, and HSBC, applying his expertise to the new venture. The current CEO, Stuart Connolly, joined in 2019, bringing a wealth of experience from his previous roles as Group CEO for TriOptima and an 18-year tenure as a Managing Director at Goldman Sachs.

The company provides a Software-as-a-Service (SaaS) platform designed to automate and streamline the entire collateral management lifecycle for financial institutions worldwide. Its client base spans the buy-side and sell-side, including banks, asset managers, brokerage firms, insurance companies, and pension funds. The business model is subscription-based, offering a scalable solution where clients pay for the capacity they need. CloudMargin generates revenue through annual contracts and services provided to its clients. The firm has seen significant investment from key market players, raising a total of $35 million since its inception from investors such as Citi, Deutsche Bank, Deutsche Börse, IHS Markit, and Jefferies.

CloudMargin’s platform is a comprehensive, end-to-end workflow tool that centralizes all collateral management activities. It covers a wide range of financial instruments, including over-the-counter (OTC) derivatives, repo agreements, and securities lending. Key features include the automation of margin calls, rule-based optimization of collateral allocation, and real-time data analytics and reporting. The platform is designed for straight-through processing (STP), which minimizes manual intervention and operational risk. A significant unique selling point is its extensive connectivity to a managed ecosystem of industry utilities, including settlement venues, tri-party agents, and custodians, facilitated through APIs and a SWIFT network membership. This integration allows for seamless data flow and process automation, reportedly delivering up to 70% in cost savings for clients.