Collateralisation: Understanding the Impacts of Regulation

In this research, we examine the impact of regulatory change on collateral requirements and discuss how firms plan to optimise their operating models and leverage technology to manage the increased demands.

This research is a continuation of Investit’s focus on OTC derivatives.

Goals

Our research on “Collateralisation: Understanding the Impacts of Regulation” focuses on the following goals:

  • Share insights and leading practices on how investment management firms are preparing to support new collateral requirements introduced by global regulatory reform.
  • Identify systems and services that benefit collateral-related activities by streamlining processes, improving efficiency and reducing costs.
  • Examine potential changes to investment strategies and counterparty relationships that may occur as a result of new margining requirements.

Scope

This research will focus on the following areas:

  • Provide an update on the requirements and effective dates of global regulations impacting collateralisation of cleared and non-cleared trades.
  • Share insights and leading practices on how firms plan to support new collateralisation requirements, including managing liquidity, analysing costs, transforming assets, processing margin calls, amending legal agreements and selecting clearing models.
  • Examine the impact of new margin requirements on organisational structures, roles and responsibilities associated with collateral processing.
  • Review solutions and services available in the market that support collateral management, margin processing, reconciliation and collateral optimisation activities.
  • Explore future trends and potential changes to investment strategies, hedging techniques and the management of assets.