Collateral Utilities – What Do They Mean For Collateral Managers?
September 15, 2015
In a DerivSource webinar, market experts explore how in-house collateral management processes and businesses might evolve as the market opens its doors to collateral utilities.
Recently, the derivatives market has adopted a more collaborative approach to address greater margin requirements new financial regulation will introduce for both cleared and non-cleared derivatives with the formation of collateral utilities and more hub-style processing outfits. These utilities created through vendor-support processing hubs or strategic alliances, such as those struck between Euroclear and DTCC, Clearstream and Commerzbank and most recently, Euroclear, DTCC, AcadiaSoft, TriOptima and a set of invested banks, all aim to improve operational efficiency and transparency collateral management processing and mobility; however, for market participants, there are many unanswered questions as to how they will or will not engage with new entities.