Bilateral OTC derivatives product design

Client context

In the context of BCBS/IOSCO framework for margining non-cleared OTC derivatives, our client identified an opportunity to provide a new service to help banks manage bilateral IM and VM call agreement and dispute management.

Project scope

• Bilateral OTC margining product design: TFE designed an end-to-end industry landscape showing how the client’s services would interact with existing industry infrastructure such as trade repositories, portfolio reconciliation and margin agreement services, and future margin utilities. We defined detailed product features, user interface requirements and a product delivery plan, and supported the sales team with customer roadshows, resulting in ExCo sign-off and commitment to product development.
• Target operating model: in parallel, our consultants developed a target operating model to support the wider business, which provided rigorous structure for definition of detailed business requirements.

Benefits

The client was able to cut through the complexity of uncertain regulatory impact and competitive response to get to a detailed product definition which could be shared with target customers, and which was supported by a detailed product development plan, agreed and signed off by key ExCo stakeholders.