InteDelta Spotlight on Collateral Management

The growth in collateralised transactions has for many years outpaced the rise in transaction volumes. In addition to this, the introduction of Central Clearing by regulators represents a fundamental overhaul of the OTC Derivatives market and significantly increases the amount of collateral required to sustain a given level of derivatives activity.

Financial institutions are responding to this growth by re-evaluating their approach to collateral management, considering issues such as:

• How will the introduction of Central Clearing impact internal collateral management processes?
• What are the cost/benefits of outsourcing collateral management to an external service provider?
• To what extent should we offer client clearing services?
• What is the best way to implement collateral optimisation?
• What should our new operating model look like?
• What changes do we need to make to our collateral management technology infrastructure and what are external vendors in the market offering?

InteDelta works with banks, hedge funds and asset managers around the world to enhance their collateral management functions in order to design and deliver industry best practice. Our consulting offering to the collateral management industry forms the InteDelta Delivery Lifecycle for Collateral Management.

The InteDelta Delivery Lifecycle for Collateral Management encompasses the following specific services and tools:

• Business Case Definition for Collateral Management
• Collateral Management Benefit Assessor
• Target Operating Model Definition for Collateral Management
• Business and Functional Requirements for Collateral Management
• System Selection and Solution Definition for Collateral Management
• Collateral Management System Select

If you would like to learn more about InteDelta’s collateral management consultancy services, then please e-mail us at contact@intedelta.com. Alternatively, please call . You may also be interested in the following recent collateral management and CCP focused reseach papers conducted by InteDelta which can be found at http://www.intedelta.com/publications:

• The Impact of Central Clearing on Collateral Management Practices
• Collateral Management for Dodd-Frank
• Mitigating Collateral Damage