Thank you for your time and participation at the 2nd Annual Collateral Conference for the Americas September 20, 2016

 

 

 

 

 

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Thank you for joining us at this year’s Collateral Conference for the Americas. It was our honour and pleasure to host you, and to again serve as a platform for industry dialogue.

 

We find ourselves in interesting times -  regulatory change that has involved years of discussion and preparation is now becoming reality. And while regulatory compliance necessarily remains our industry’s primary focus, we must not lose sight of the many other innovative developments unfolding.

 

And so we are pleased to share with you some of the take-aways from this year’s conference, which revolved around the opportunities that collaboration, consolidation and transformation can offer the Collateral Management industry.

 

 

Collaboration

 

  • As an industry we face common challenges – challenges that we traditionally have approached in our own silos, at an individual firm level.
  • Due to different structures, commercial objectives and business models, each industry participant has different methods of responding to the challenges and opportunities.
  • These differences are further fuelling complexity in developing solutions and approaches for compliance.
  • There is therefore a need to formulate common, shared goals, and for this to be our starting point to a new level of collaboration.

 

 

Consolidation

 

  • The challenges posed by regulatory compliance give us an opportunity to take a longer-term strategic view of collateral management and consider what our industry needs in a post-compliance world to support and contribute to the next stage of our evolution.
  • By consolidating, centralising and optimising collateral requirements and obligations within our firms, rather than continuing with the current fragmented approach, we will achieve better visibility and control.  Increased control will allow for a more efficient mobilisation of collateral.
  • In addition, a consolidated approach to collateral management enhances transparency, mobility and counterparty risk management.
  • The industry needs to think together, and collectively define how and where standardisation and automation can occur.
  • At an individual firm level, both buy and sell side firms can look into the activities within their own value chains that can benefit from new technologies and processes.
  • We also need to consider the skills, experience and abilities our people need, to participate in the new way of managing collateral - a more interconnected and technology-enabled industry will require different skill sets from those our people have today.
  • For consolidation to occur, there are many hurdles to overcome. Tackling these individually can be costly. By taking a holistic view of our industry challenges, and focusing on developing comprehensive, industry level solutions, we can mutualise costs and better manage risk.

 

 

Transformation

 

  • The collateral management industry is experiencing a true global transformation.
  • Margin requirements for example, are not simply taking ‘a fine sandpaper’ approach, rather, they are creating a significant restructuring and step-change in the OTC Derivatives market.
  • Regulation, whilst challenging, will drive the optimisation of technology and processes within collateral management, creating the need for new, better products and services for our industry.
  • To optimise our industry ecosystem, while achieving compliance, we need to start now. It is too late to be early.  We need to start looking at how to optimise our processes, people and portfolios today.

 

 

 

 

 

 

 

 

Collateral Conference for the Americas 2016

New York | 20 September 2016