The Collateral Infrastructures

Manmohan Singh

collateral-plumbing-bookThis chapter will cover some of the major challenges for an efficient global financial system, including the mobilisation of eligible collateral across a fragmented global infrastructure and the role of global custodians. The chapter describes how the market has entered into a new collateral paradigm that requires a structured, cohesive approach both internally within financial institutions and externally across the global financial system. In keeping with the theme of this book, this chapter can be viewed through the lens of collateral and how the custodians will impact the plumbing in the future.


The overall goal of the numerous regulatory initiatives is to make the global financial market more resilient against systemic risk. Since 2008, regulators have acknowledged the importance of collateral and, in some jurisdictions, have addressed its shortage. Regulations recognise that collateral lubrication is essential to financial plumbing and have chosen to use practical methodologies (eg, netting of repos under certain conditions), although the leverage ratio will still be a binding constraint. The primary driver has been the continued shift from non-collateralised

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here