Service
Collateral utility on-boarding
Banks caught by BCBS/IOSCO regulations for margining non-cleared OTC derivatives must find a solution for initial margin calculation and dispute management. Several solutions are emerging, including industry-driven initiatives centred around AcadiaSoft and TriOptima, and commercial initiatives such as NetOTC. Whichever solution is chosen, banks must execute an efficient on-boarding project. Our approach covers: Business impact […]
Strategic roadmap and implementation planning
There are many paths to the target state clearing and collateral operating model. A multi-year strategic roadmap must show how major components of change (people, process, technology) fit together to deliver the strategic solution. The Field Effect has developed sophisticated road-mapping tools enabling rapid comparison of alternative implementation scenarios so you can make the right […]
Collateral vendor / utility selection
Firms of all types may need to consider investment in third party technology or services. Buy-side firms typically have little collateral infrastructure; many sell-side firms recognise their existing collateral technology is not fit for purpose; custodians may not have suitable collateral management technology for customer needs. Fortunately many new collateral management software vendors, service providers […]
Collateral target operating model
The firm’s business operating model must be aligned with the strategy. Each firm needs to design a target operating model that addresses key dimensions such as: End-to-end processes for margin calculation, call processing (in and out), dispute management, FOP/DVP instruction, asset servicing, substitution, default management etc. Critical business functions, services and capabilities such as risk […]
Voice of Customer
In the face of uncertainty about regulation and market developments, firms often need to strengthen their understanding of customer expectations. Failure to hear the “voice of customer” can misdirect product design and innovation, or worse, allow competitors a foothold. Yet customers often don’t fully understand the impact on their business of new regulations and may […]
Sell-side clearing and collateral strategy
The larger sell side firms have been subject to mandatory clearing since 2016 and will now be exchanging bi-lateral VM & IM. Smaller firms will be exchanging VM already and need to ensure they are ready to exchange IM as they reach the phase-in requirements threshold. In addition firms with large customer franchises must decide […]
Buy-side clearing and collateral strategy
Buy-side firms from investment managers to pension funds, insurance firms, corporate treasuries to hedge funds, will variously be impacted by regulations related to mandatory clearing and margining of non-cleared derivatives. Even though mandatory dates have moved out, firms may need to adopt clearing earlier for economic reasons. Each firm needs a clearing and collateral strategy […]
