Collateral Management

Market History & Development

Overview of Financial Products comprising bi-lateral exposure

  • Interest Rate Swaps
  • Credits
  • Equity Derivatives
  • Commodities

Trade Risks & Contract Economics driving price capture for exposure calculations

Market Participants and roles

Understanding Strategies Used in mitigating credit risk with collateral

  • Cash vs Securities
  • Credit Ratings
  • Haircuts
  • Independant Amounts/Initial Margin
  • Transaction price impacts and funding
  • Re-hypothecation/re-use
  • Collateral Trading & Liquidity
  • Correlation and Concentration
  • Repos
    • How they work
    • Repo Council/ICMA
    • GMRA
  • Securities Lending
    • How they work
    • ISLA
    • Borrower Motivations
    • GMSLA

Operational Processes involved in setting up a collateral programme-ISDA® CSA Documentation and negotation and

  • Daily Margin call process
  • Initial Margin
  • Theshold and MTA's
  • Capturing trade population and exposures
  • Marking to market collateral held
  • Allowing for substitutions and transit
  • CSA terms in the database
  • Notifying margin call
  • Eligible Collateral
  • Dispute Resolution
  • ISDA® Best Practice

Utilities and service providers

Mainstream systems employed

Future market developments