Single Source of Clean Data:
Modern Data Management

New white paper reviews how better data can help firms optimize their collateral management practices.

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White Paper: Single Source of Clean Data: Modern Data Management

Better Risk Analytics Power Our
Derivatives Management System

 
Control your costs and maximize your capital with our hosted derivatives trading and operational processing solution.

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OpenLink Derivatives Trading solutions

Collateral Management Accolades

Analysts praise our Collateral Management Solution for delivering cross asset product coverage with seamless integration between the collateral and risk management functions.

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OpenLink Collateral Management Solution

Be Ready for Regulatory Compliance

Our Dodd-Frank Compliance Solutions deliver high-value solutions with immediate benefits, helping you meet CFTC regulatory compliance standards.

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OpenLink regulatory compliance software

Powering Growth

Proven techniques and methodologies can help you create a roadmap to an effective Enterprise Data Governance program for your firm.

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Enterprise Data Governance

Enhanced Decision Making...

through integrated bar management. Proven metals solution that allows businesses to manage their derivatives and complex movements of physical metal.

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OpenLink solutions for base and precious metals trading

How can firms make more effective use of collateral and make fewer demands on other capital within the firm?

As credit management has become a major concern in today’s market, it is extremely important for firms to continually assess their liquidity and exposure to counterparties. One of the best ways to proactively manage these risks is through a collateral management system

Collateral management involves the effective handling of legal agreements, collateral valuations, and operational workflows so that firms can be sure that their positions and counterparty exposure calculations are accurate.

Your Challenge:
New OTC derivatives regulations will require the more effective management of collateral

In order to improve transparency and reduce counterparty risk, Dodd Frank and other regulations mandate that standardized OTC derivatives be traded on an exchange or regulated trading platform, cleared through central counterparties (CCPs) and reported to a trade repository. With trades dispersed across multiple clearing venues, the ability of firms to “net out” with counterparties is diminished. Furthermore CCPs typically have a more restricted list of assets that they are willing to accept as collateral – a particular challenge when traditional AAA assets are downgraded.

Our Solution:
Make more effective use of collateral in OTC trading

Our collateral management system functionality supports both cleared and un-cleared OTC derivative trades. It provides real-time information across credit support annexes (CSAs) terms for bi-lateral counterparties and central counterparties (CCPs) and counterparty netting agreements.

Using our system, firms can quickly decide on the most efficient use of collateral, and trade with counterparties who offer the most favorable CSA terms for the assets they are willing to accept as collateral.  Furthermore with full visibility of CSA terms, firms can put in place contingencies to post additional collateral in the event of a downgrade to the assets they are holding.

Related Solutions


Heeding the Call for New Collateral Management

WHITE PAPER: Heeding the Call for New Collateral Management

As the overhaul of derivatives markets forges ahead, financial institutions are facing data, valuation and risk mitigation challenges as they adjust to the new rules of collateral management.

Learn more in this white paper ➔


Questions?

For more information about our Collateral Management solutions please contact us today