Banks look for tech solution to collateral crunch

Crunch solutions

Christophe de la Bastide

Collateral management used to be an afterthought, but new regulations – and revamped swaps pricing practices – have sent it rocketing up the list of priorities for dealers and their clients. All standardised over-the-counter trades will soon be cleared by central counterparties (CCPs) – which require participants to post initial and variation margin – while uncleared transactions will also be subject to compulsory bilateral margining. The vast majority of collateral in both cleared and uncleared