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Effective collateral management strategies

The Panel

  • Barry Hadingham, Head of derivatives and counterparts risk, Aviva Investors
  • Alan Sheehan, Director, Product management collateral management, Calypso Technology
  • O’Delle Burke, Head of collateral management APACJP Morgan
  • Thomas Hansen, Managing director, Credit Suisse
  • Moderator: Blake Evans-Pritchard, Senior staff writer, Risk.net

Variation margin (VM) rules that require counterparties to post ‘variation margin’ in relation to their uncleared over-the-counter (OTC) derivatives contracts came into effect on March 1, 2017. While firms are still adapting to their new operating models, they also need to prepare for complying with the initial margin (IM) regulations. The IM rules will apply to additional counterparties via a phased four-year approach from September 2017, applicability depending on the size of the group portfolio. 

While regulation is often a key catalyst for technological and operational change, it’s not the only driver. A more competitive landscape with squeezed margins, combined with an increase in utility service providers as well as new technology deployment models, is prompting organisations to review their business strategies for collateral management and its supporting infrastructure. 

A panel of industry experts discuss the initiatives being undertaken to ensure efficient strategies are in place to manage and optimise the use of collateral and how to deal with the challenges firms are still facing after the March deadline. Can these challenges be seen as a market opportunity and be turned into business advantages?

Issues covered in this webinar include:

  • Post-VM challenges: what have we learned? 
  • IM compliance to meet regulatory requirements. 
  • Pre-trade optimisation: methodologies for calculating IM and deciding venue for clearing.
  • Post-trade optimisation: mobilising the inventory – a single source of inventory or inventory consolidation? 
  • How can we create efficiencies and simplify operations of collateral in the margin settlement space? Moving from spreadsheets to real-time data and a single source of truth.
  • Is it possible to reduce the total cost of ownership but still access the latest technology? What is the best deployment model? 

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