The Triparty OTC collateral conundrum
- White Papers
- 03.05.2016 12:05 pm
For large institutions the process of gauging whether you need to be complicit with BCBS / IOSCO 261 has started. For everyone else, you need to prepare and ensure you have a capability to meet the demands of collateral velocity and efficiency under the new regulations. This is something that cannot be done effectively or cheaply manually. In our recent paper “Turning Up the Dial” we explored a holistic approach to collateral management and optimisation, and expanded on various themes; all interrelated to liquidity and capital management. Within this paper we suggest that Triparty facilities could be an integral part of the holistic model, enabling enhanced optimisation, settlement and control functions within the process, against a centralised inventory portfolio. We also explore the open question, “Why are market participants not using Triparty facilities as much as they could be for collateral management?”
Click here to read the white paper.