Managing Collateral Standing Settlement Instructions (SSIs)
Regulatory reform in the OTC derivatives market has led to a mandatory requirement that derivatives trades are backed by collateral. Margin requirements for non-cleared derivatives recommends firms to post initial margin by T+1. In addition, both buy and sell-side firms are required to exchange variation margin daily, leaving market participants with the huge operational task of preparing for the future.
The Depository Trust & Clearing Corporation (DTCC) and GlobalCollateral can ease this burden: The collateral standing settlement instruction (SSI) functionality in ALERT® allows GlobalCollateral’s Margin Transit Utility (MTU) to electronically pull collateral SSIs from its database, helping clients with their initial and variation margin movements and enabling real time enrichment of collateral SSIs for margin calls.