HSBC Securities Services shas launched its Over-the-Counter (OTC) Clearing Collateral Service. This includes calculation and verification of margins and interest as well as automated margin payments. Collateral movements are processed on a straight-through basis using market standard SWIFT links with custodians.
Craig Cowe, head of collateral management product, Securities Services, HSBC, commented: “Incoming regulations to centrally clear OTC derivatives mean that it’s crucial for investment managers to know where their assets are and what they can be used for. We’ve put in place collateral processing hubs in Europe and Asia and have invested significantly in our capability to ensure our clients can keep pace with global regulatory change.”
John Van Verre, global head of custody and treasury at HSBC, added: “In the
past, collateral management has been viewed by many institutional investors as a back office activity. These new regulatory requirements mean that the process is becoming more firmly integrated with the front office, which requires much more proactive management of positions than historically was the case.”