The Economics of Collateral and Making a Profit - Free Webinar

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Going back ten years or more, Collateral Management was in many firms seen as an adjunct to their Operations or Credit risk teams. Given the easy profits from trading, little attention was made to the flow of margin assets or their cost, as these were a side-line in the overall profits of a firm. The first step change for a CM team was the arrival of SwapClear in 1999, and the take up of clearing by a core group of banks in 2000 with the drive to automate the clearing process. SwapClear requires Initial Margin which was a new idea for OTC products. Most Credit Support Annexes at the time required net mark-to-market (or Variation Margin as most call it now), and no additional amounts (other than some customised CSAs for FX or Prime Brokerage). 

Initial Margin became a new cost to the CM team, and forged a new relationship with the Repo / Treasury desks – as someone had to bear the funding cost of the IM, and it couldn’t be the CM team itself who have no profit to spend. This became the genesis of an evolving relationship between the front office and the CM teams – and also the Risk Management team to understand why the IM at SwapClear is driven higher or lower, and therefore increasing or decreasing costs.

 

Join Us for a Free Webinar on The Economics of Collateral and Making a Profit

28th June 2016: 3pm BST (10am ET)

Complete the Form Below to Register

Our panel will discuss the latest research into the effects of mandatory clearing and bilateral margining on your collateral management activity. 

  • Is cash still king? 80%+ of margin calls are met with cash but in this low interest rate environment, is this still appropriate?
  • What are the platform and infrastructure choices to meet the March 2017 non-cleared OTC collateral regulations?
  • How can funds utilise their assets to cover margin calls without reducing their return on investment?
  • When will the shortfall of assets kick in and what should you do?
  • What you really need from an optimisation approach
  • What new innovations are happening in collateral management?

Speakers will include:

Ted Allen

Business Development Director: FIS

Ted Allen has been with FIS for four years and is currently Head of Product management for Collateral in the Capital Markets business. He is responsible for the strategic development of SunGard’s enterprise collateral management solution suite, Apex Collateral. Ted brings experience in all aspects of collateral management front to back from previous business and technical roles at JP Morgan and Nomura and through many years in with consultancies and technology vendors. He has led the creation of FIS’s Apex Collateral to provide a single platform to manage, trade and optimise collateral.

John Lund

Managing Director: JXL

John has worked in capital markets for 15 years+ (10 at Accenture and 5+ as independent consultant). He has extensive experience in derivatives and collateral management having worked both with the sell-side (clearing members) and buy-side (asset managers) and currently focuses on regulatory driven business change. He has previously worked with HSBC, Barclays, Morgan Stanley and Accenture.

Eric Bystrom:

Director, FIC: Commerzbank

Eric specialises in collateral optimisation/trading, funding, liquidity, OTC clearing and client clearing. He currently works on front office collateral optimisation, repo and tri-party repo, liquidity management and short term funding at Commerzbanks, and has previously worked with Capco, Goldman Sachs, and Citi Group.

Bill Hodgson

Owner The OTC Space, Moderator

Bill's career has included a wide variety of businesses including cash registers, children’s games, RADAR, oil drilling and for the past 20 years the capital markets, especially OTC derivatives. In the capital markets he initially worked on developing software to process OTC derivatives at Merrill Lynch, in the days when paper trade tickets were still the norm. Subsequently he has worked with major banks to improve their OTC processing capabilities, including with Barclays Capital as Head of OTC (ISDA) Projects, LCH.Clearnet as Head of Product Development for the SwapClear service and at DTCC to design, build and deploy the Trade Information Warehouse for Credit Default Swaps. He originally qualified at Greenwich University in Computing, and is a contributor to three books on OTC products and capital markets and is the owner of The OTC Space Ltd.

This webinar will be hosted via 'GoToWebinar'. To join the webinar, submit the form below and join a test webinar to check that your technology is compatible (most are).The webinar will allow you to ask questions to the panel in real time, and will be published as a video shortly after.

Registrations for this webinar are now closed. The webinar was recorded live, and will soon be available on The OTC Space for those who weren't able to join it live.

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