June 28, 2014

Bringing Efficiency to Collateral Management | Sapient Global Markets White Paper

Bringing Efficiency to Collateral Management


Trends, Challenges and Opportunities for Success


More than 55% of firms surveyed don’t believe they have efficient processes for collateral management or are well prepared for future challenges; according to a recent Sapient Global Markets survey.  Due to an ever-evolving regulatory landscape, collateral management has been transformed into a complex, costly exercise. Through the onset of new regulations, firms continue to face many challenges including higher collateral volumes, increased margin calls and interaction with more counterparties.



What are the drivers of this transformation? And, how can your firm transform collateral management into a competitive advantage?

Today, five years into the era of re-regulation, the financial services industry bares the heavy weight of a regulatory framework that is complex, somewhat contradictory and, in some instances, incomplete. New legislation around the globe, including Dodd-Frank, EMIR and Basel III, has created a tangled web of rules designed to increase market stability and resiliency, enhance transparency and accountability and reduce counterparty, operational and liquidity risk.

The fallout of regulatory reform for most banks and capital market participants has transformed collateral management into a complex, costly exercise involving higher volumes of collateral, increased margin calls and interaction with more counterparties.

This paper looks at trends in collateral management including cross asset netting, optimization, transformation and shortfalls and discusses areas of internal collateral management where firms must bring efficiency in order to remain competitive and protect revenues.

Read the whitepaper in full, attached below.

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