Collateral Management

Prof Craig Pirrong offers his take on the biggest concerns for cost and collateral management in 2012 and as the push to central clearing progresses. Comments based on “The Cost of Clearing” podcast in November 2011.

Major regulatory changes, evolving market structure and funding challenges are making capital efficiency more imperative. Against this backdrop, the economics of derivatives and cash activities are being reshaped. OpenLink's Mark Abrams explains how a holistic approach to risk management — especially in regard to counterparty risk and collateral management — can play a pivotal role in improving your firm’s efficiency and maintaining its competitiveness.    

Twenty years ago when confirmations for OTC products were produced using Word for Windows 2.0 and sent by FAX for manual review, identifying the legal entity was a hit and miss affair.

Basel III presents new challenges to collateral trading activities and collateral management operations. In part II of a series, GCMS’ Saheed Awan explores the impact Basel III and central clearing of OTC derivatives will have on collateral trading activities and he calls for the restricted view of collateral management to be expanded to support efforts to achieve greater efficiency through improved and centralised processing. 

Regulators and bank supervisors have become investment advisors!

How are investment managers improving collateral management processes three years after the Lehman Brothers default and one year after ISDA published its best practices ‘guide’ for the market? DerivSource’s Julia Schieffer talks to industry participants about their view on true market practice and concerns on managing margin within a central clearing environment.

In the first instalment of a two-part series, GCMS’ Saheed Awan explains the likely implications of Basel III on collateral management activities including liquidity management.

Growing complexity in managing collateral resulting from new CCP collateral requirements and regulatory reform is driving buy-side firms to consider outsourcing the back office function to custodians. DerivSource’s Julia Schieffer speaks to the custodians about how they are enhancing collateral management service offerings to support new needs of clients in a new marketplace.