CloudMargin, the collateral management technology provider, and Derivative Path, the derivatives management platform, have entered into a strategic partnership to deliver an integrated front-to-back workflow for over-the-counter derivatives and collateral management, targeting regional and community banks as well as buy-side institutions.
The partnership brings together Derivative Path’s DerivativeEDGE platform and CloudMargin’s cloud-native collateral and margin management system, enabling tighter integration between front-office derivatives activity, compliance processes and collateral workflows. The joint solution is designed to reduce operational friction while improving transparency and audit readiness across the derivatives lifecycle.The combined offering is positioned as an end-to-end solution covering trade execution through to margin settlement, including valuations, margin calls, interest calculations and connectivity to global custodians via SWIFT. The integration is also intended to support regulatory compliance and reporting requirements, while providing a scalable, cloud-native architecture aligned with modern operational resilience expectations.
“We have known the CloudMargin team for a long time, respected them, and have lots of mutual relationships and shared connections – including a client we both already worked with before formalising the partnership,” states Zack Nagelberg, Chief Growth Officer at Derivative Path, in conversation with TradingTech Insight. “Rather than reinvent the wheel, partnering with a best-in-class collateral platform made sense from a speed-to-market perspective. It is a highly complementary piece of functionality that adds significant value for our clients, without requiring us to divert focus from other strategic areas.”
Through single sign-on (SSO) and automated data exchange between the two platforms, users will be able to streamline onboarding, reduce manual reconciliation and accelerate implementation timelines. Legal entity and agreement data maintained within DerivativeEDGE can be transferred directly into CloudMargin, supporting faster setup and ongoing operational efficiency.
“Both CloudMargin and Derivative Path operate modern SaaS platforms with flexible data models and strong capabilities around data ingestion and dissemination,” points out David White, Chief Commercial Officer at CloudMargin. “That made it relatively straightforward to establish a meaningful connectivity layer between the two systems. The integration was implemented quickly, and clients can benefit from it today if they choose to do so.”
He continues: “As a cloud-native, AWS-hosted platform, CloudMargin prides itself on rapid implementations – typically measured in weeks rather than months or years. Working with Derivative Path accelerates this further. The trade feeds are already integrated, so onboarding largely comes down to configuring collateral agreements, which can be done very quickly. We are not quite at the point of simply flicking a switch, but we are very close.
For Derivative Path, the partnership reinforces its focus on providing a system of record and workflow engine for OTC derivatives, while CloudMargin highlights the extension of its straight-through processing and automated margin workflows into a broader derivatives management context.Initially, the partnership is positioned with Derivative Path acting as a distribution channel for CloudMargin, although the two companies have discussed making this more bilateral over time.
“Derivative Path will act as a licensed reseller of CloudMargin, which allows everything to be covered under our existing master services agreement,” explains Nagelberg. “That simplifies vendor management and procurement, and speeds up time to market. For existing Derivative Path clients, all trade data is already in our platform and the connectivity to CloudMargin is in place. They still need to onboard their collateral agreements within CloudMargin, but that would be required in any case. Overall, we expect fast implementations for our existing clients.”
The integrated solution is aimed at institutions seeking to modernise derivatives and collateral operations without deploying multiple disconnected systems, particularly in an environment of increasing regulatory scrutiny and operational complexity.
“CloudMargin serves both buy-side and sell-side clients, and we see this solution as additive across our client base,” says Nagelberg. “That said, adoption is more likely among firms with more sophisticated capital markets operations – higher trade volumes, multiple counterparties, and more complex collateral requirements. At Derivative Path, we have strong penetration among US regional and community banks, so a key focus is on introducing CloudMargin’s collateral management capabilities to that client base, as well as incorporating it into larger new opportunities in our pipeline. We are also seeing growth among alternative investment managers, including private equity and private credit, and we are excited to extend the solution there as well.”
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