Inventory mobility can deliver funding flexibility
Banks seeking to capitalize on new business opportunities need to maximize the number of funding options available to them at the right price. Collateral mobilization of the global collateral inventory is the panacea.
Inventory mobility can deliver funding flexibility
Banks seeking to capitalize on new business opportunities need to maximize the number funding options available to them at the right price. Collateral mobilization of the global collateral inventory is the panacea.
MTU Workflow Streamlines Collateral Settlement and Data Aggregation Needs
New market conditions increase the need for streamlined collateral processing and standardised data. The MTU can help you by accommodating bilateral and triparty workflows and aggregating collateral settlement status updates and collateral position data.
A Primer for Initial Margin Implementation
As new regulations governing margin and collateral continue to be implemented over the next few years, firms need to familiarize themselves with key thresholds and parameters that drive compliance. A grounding in these fundamentals can help firms plan for the operational and economic impacts of the emerging regulatory framework.
What do you mean by “Triparty”?
The increased complexity of margin rules governing derivatives trading is spurring growth in the use of segregated collateral account structures with custodians and triparty providers. Triparty and third-party arrangements both need to be accommodated.
Planning Your Initial Margin Compliance: A Six-Point Checklist
Just as the hardy settlers of the western United States, traversed unknown paths across the Rockies, expediting the journey for those who followed, global banks have prepared the way for Initial Margin (IM) readiness for regional dealers and buy-side participants.
Back office benefiting from higher profile
Gareth Jones, COO, GlobalCollateral
Banks are re-engineering their back offices. Can this really achieve cost savings, business flexibility and customer value? The right investment is critical for back & front office teams can make that big step toward true cross-border collateral management.
Meeting New TBA Margin Requirements: How You Can Prepare
As the June 25, 2018 implementation date approaches for the Financial Industry Regulatory Authority’s (FINRA’s) Rule 4210, firms engaged in to-be-announced (TBA) transactions in the U.S. secondary mortgage market have formidable work to do to prepare for compliance.
Tackling the Top Three Operational Challenges Across the Collateral Management Lifecycle
As financial market participants adjust to the fast-growing volume of margin calls and increasing pace of collateral movement, maximizing operational efficiency is more important than ever.
Leveraging SSI data to reduce the cost of collateral settlement fails
MTU leverages the Omgeo ALERT solution, a global repository for storing Standing Settlement Instructions (SSI), to reduce collateral settlement fails with straight-through processing.
The business case for tri-party repo flexibility
Read this article published in Securities Finance Monitor looking at the business rationale for US market participants to mobilize their US assets in European tri-party platforms using IMS.
Preparing for new margin requirements
Chief Commercial Officer, Ted Leveroni recommends firms take advantage of the delay in the enforcement of VM rules to prepare and develop strategic solutions to tackle the upcoming liquidity challenge.
GlobalCollateral’s Inventory Management Service
Euroclear adds US equities to collateral highway
Regulatory green light means US banks can now use US equities as collateral in Europe
Catching the next wave of OTC derivative margining
By March 2017, all firms will need to adhere to variation margins requirements. What lessons have been learnt so far? What are the issues to consider at this stage of the transition?
Buy-side faces tough year of collateral reform
March’s all-but-universal requirement for exchange of variation margin between counterparts is likely to present some considerable challenges. Are you prepared to handle the big bang?
Pushing through the pain barrier
Collaboration, consolidation and optimisation will prove abiding themes as firms get to grips with new initial and variation margin rules for the non-cleared OTC derivatives transactions.
Holistic collateral management framework
Complying with regulatory deadlines is important but how can firms prepare for the longer term with a holistic framework for collateral management?
Beyond regulatory deadlines with collateral management strategies
The uncleared swap margin rules are driving tactical changes to meet compliance deadlines. It is important to look beyond the deadlines and identify collateral management strategies to reduce costs while best managing liquidity and counterparty risks.
Not a question of either / or
Tactical and strategic objectives to develop a collateral-centric operating model
If we’re moving to an environment in which almost every trade has collateral implications, it makes sense to embed collateral management into every aspect of the trading process, but how do firms balance tactical solutions with long-term strategic investments?
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Collateral Settlement Fails: An Industry Perspective on Bilateral OTC Derivatives
With new regulations rapidly approaching, collateral settlement fails can no longer be viewed as ‘business as usual’. Remedial costs are set to soar and unsupported exposure will become progressively more significant. Now is the time to explore the causes, impacts and potential solutions to head off this nuisance before it becomes a real headache
Act now before the nuisance becomes a real headache!
Highlighting key findings in the recent GlobalCollateral white paper ‘Implications of Collateral Settlement Fail’ and looking at the leading causes of collateral settlement fails: Miscommunication, Constrained Technology, Insufficient Collateral and Counterparty Insolvency.
Collaborating to conquer the OTC collateral challenge
For the OTC derivatives industry, joining forces is the only way to prepare for a rising tide of regulation. Only a combined industry initiative can drive the transformation in fluidity that will be needed when new regulations place collateral at the center of every OTC derivatives trade.
+ READ THE ARTICLE
The Impact of Collateral
As the current regulatory tsunami begins to dissipate, the drive to collateralize derivatives and the bolstering of firms’ capital resources will fundamentally change the collateral management ecosystem.
As flows of collateral multiply exponentially, the market’s operating models will have to become more efficient and its infrastructures more streamlined....
Breaking down the silos: adopting a holistic approach to collateral management
Under G-20-led reforms, mandated central clearing for derivatives is now underway in the US, while in the EU central clearing will be phased in early 2015. While these changes will ultimately bring efficiency to collateral management processes, there will be challenges for firms to realise these efficiencies, especially in the early days.
Derivatives Collateral Management: Entering the Industrial Age?
The second in a series of two papers that examine the recent developments in derivatives collateral management activities. Based on interviews with respondents from 34 firms, it highlights internal and external developments for firms active in derivatives markets across the globe.
Webcasts and videos
Derivsource Webinar 19th June: Collateral Position Reporting: What Are the Best Practices for Operational Efficiency?
In a GlobalCollateral DerivSource webinar on 19th June, a panel of experts including GlobalCollateral’s Elena Staloff explores the emerging best practices that both sell-side and buy-side firms can adopt to streamline collateral position reporting and related operational processes.
GlobalCollateral: Inventory Management Service overview
IMS responds to growing demand for greater global asset mobility as firms look to use less liquid assets on a longer term basis while reducing costs
Buy-Side Operational Risks in Collateral Management
Learn more about buy-side challenges in collateral management according
to GlobalCollateral’s Mark Jennis.
Uncleared Margin Rules and Operational Risks in Collateral Management
Buy-side firms may not be impacted by initial margin requirement rules just yet, however they need to plan ahead to meet regulators’ requirements for the timing of collateral calculation and posting, minimum transfer amounts, and eligible collateral – beyond the variation margin requirements that came into play in 2017. Learn more about the uncleared margin rules’ impact and how Margin Transit Utility can help from GlobalCollateral’s Amy Caruso.
Industry solutions to streamline collateral processing
Derivatives regulation has resulted in increased margin call volume and capital constraints; hear more about the need to optimize collateral and reduce operational inefficiencies across multiple types of derivatives.
Learn how Margin Transit Utility Helps Firms Improve Collateral Management
Initial and variation margin exchanges increase as well as costs. How does MTU help?
Solving the collateral conundrum
How firms are balancing the need to implement a cost-efficient, practical approach to complying with new regulations, with optimising their collateral pools and managing growing operational volumes? Find out the views of leading industry experts, including DTCC-Euroclear Global Collateral Ltd's Amy Caruso, in this Finaincial news debate – recorded 6 June 2016.
Mitigating the impact of increased collateral settlement fails
GlobalCollateral’s Ted Leveroni and PwC’s Thomas Ciulla examine how best to lower the rate of collateral settlement fails, lessen the operational cost burden and reduce industry-wide unsupported exposure
Collateral settlement fails - an introduction
GlobalCollateral’s Ted Leveroni explores collateral settlement fails
An industry solution to collateral settlement fails
GlobalCollateral’s Mark Jennis explains the industry solution to collateral settlement fails
Collateral management strategies
Margin Transit Utility - Fact Sheet
Margin call volumes are rising as regulatory changes take effect in the derivatives markets—driving a need for a comprehensive collateral management solution to process and confirm collateral settlements quickly and securely.
Inventory Management Service – Fact Sheet
The need to access sufficient liquidity and optimize collateral across all secured funding and margin postings has driven financial institutions to pursue credit and operationally efficient collateral management solutions on a global basis. IMS automates the movement of corporate bonds, asset-backed securities and equities from your DTC account to the international triparty environment of Euroclear Bank.
GlobalCollateral for Financing
For the secured funding market, GlobalCollateral is the only financing solution that delivers the significant improvement in collateral mobility needed to adapt to the new regulatory era.
As an automated, open architecture solution, it allows market participants to seamlessly mobilize eligible assets around the world to where they are needed most, and to collateralize any type of securities financing transaction. It is a highly efficient industry solution, brought to you by GlobalCollateral Ltd., a DTCC-Euroclear joint venture.
GlobalCollateral for OTC Derivatives
For derivatives users, our platform delivers the step change in operational efficiency needed to adapt to a new regulatory era.
Through automation, standardization, centralization and transparency, it creates simplicity from complexity, freeing market participants to focus on their businesses.
It is a robust and scalable industry solution, brought to you by GlobalCollateral Ltd.,
a DTCC-Euroclear joint venture.
GlobalCollateral - A global infrastructure for a new world
The volume, frequency and costs of margin calls are expected to rise substantially over the next several years as regulatory requirements take effect. At the same time, firms need to broaden the funding of nonliquid assets. Together, these forces are heightening the operational risks attached to manual, non-standardized collateral management processes and spurring the need for increased global mobility of collateral assets. The challenge for market participants around the world: to optimize liquidity and simplify their collateral management and settlement activities.
Collateral Management Utility - Fact Sheet
Financial reforms are increasing the importance of effective collateral management. Whether for OTC derivatives or financing, firms have to identify, source, select, post and monitor collateral far more efficiently than they have in the past. The Collateral Management Utility (CMU) helps you rise to the challenge, reducing collateral processing risk, minimizing intra-day credit utilization and freeing you to focus on business opportunities
MTU Messaging Implementation Using MyStandards
DTCC’s Margin Transit Utility is compatible with various margin call matching systems and links to custodians, dealers, administrators, central security depositories and buy-side participants using standard messaging formats (ISO/CDTS Messages via SWIFT Network). Users that want to configure a third-party application to receive and process the data require access to MTU’s ISO messaging specification.
Margin Transit Utility Triparty Messaging Service – Fact Sheet
The Margin Transit Utility (MTU) Triparty Messaging Service delivers a processing solution to dealers and buy-side firms by providing a central interface for triparty collateral allocation that eliminates the need for multiple, agent-specific connectivity builds to individual triparty agents.
White papers and articles
See the sharp spending increases firms are facing for collateral settlement fails and collateral management activities
The costs for Collateral Management are rising
Highlighting internal and external developments for firms active in derivatives markets across the globe.
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Collateral Management 2.0
After years spent on managing regulatory initiatives and figuring out what to do, it’s time to focus on how to do it better and how to competitively differentiate yourself. Next generation collateral management, or Collateral Management 2.0, could be the answer, but how can you arrive at Collateral Management 2.0 with binding priority, time, and cost constraints?
Meet the margin challenge
Gareth Jones, COO of DTCC-Euroclear Global Collateral explains more about how Global Collateral is helping the market adjust to the OTC derivatives margin challenge.