CloudMargin have published a new white paper titled ‘A Practical 10 Step Guide to Collateral Management’.
Traditionally, financial institutions viewed collateral management not
as a necessity but as something that had to be performed with little concern; a reactive function positioned at the culmination of the trading cycle that didn’t require too much attention or thought. Put simply, a process that was not important.
The 2008 financial crisis and the years following have had an unprecedented and drastic impact on the perception of collateral management and the importance of its operations. The regulatory changes that have come hand in hand with the credit crisis have seen a rise in central clearing for OTC derivatives, use of trade depositories, Basel III capital charges and a change of internal counterparty credit risk management practices to name but a few. The level of visibility and scrutiny that collateral management is now facing means that firms need to know that the data they are receiving is without doubt correct and they are indeed covered from any exposure that may occur.
As the role of collateral grows in your organisation in terms of both importance and cost, it is increasingly important to take full control of your collateral management programme, irrespective of company size or traded instrument. With this in mind, CloudMargin has produced a white paper; outlining the basics of collateral management in a complete, easy to digest, practical 10-Step Guide.
This Practical Guide to Collateral Management white paper will cover all fundamental aspects concerning the management of collateral, the associated risks and opportunities, as well as the key topics involved in establishing and running a collateral management function.