Service Overview
Dynamic Changes in the Collateral Ecosystem
Global regulation is increasing the demand for collateral and changing the supply dynamics in the capital markets. The difficulties of managing high-quality collateral for centrally cleared, bilateral derivatives trading, as well as leverage ratios are not specific to a single organization, but cut across the entire financial services industry. The market challenges are both dynamic and rapid, impacting the management, mobilization, and transformation of collateral.
For organizations to maximize value from finite collateral resources, the Sell-Side, Buy-Side, Custody Banks, and Clearing Members, must work together to establish a comprehensive and cohesive process that accounts for all pieces of the collateral ecosystem. A proactive collateral management approach is necessary to address liquidity constraints at an enterprise-wide level in an increasingly interconnected global capital market.
By creating a technologically advanced solution that can facilitate efficient collateral flow and transformation across an entire organization, firms can benefit not only from reduced risk, increased liquidity, improved regulatory capital and cost management, but benefit from a comprehensive strategy for collateral management that will provide a comparative advantage and help to maximize the return on investments.