Risk Australia: Clearing broker collateral replacement mechanisms could put asset managers in breach of client mandates

contract-draft

The inclusion of a commitment to refund the value but not the exact type of collateral posted with clearing brokers in standard documentation could put asset managers in breach of client mandates, according to Annette Mullen, head of rates at Colonial First State Global Asset Management.

Speaking at the Risk Australia conference held in Sydney yesterday, Mullen said that the standard contract put forward by clearing brokers allows the flexibility to replace the economic value of collateral poste

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net 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 indvidual account here: