Nick Stafford | published on 28th July 2017

Merging of stock lending & OTC derivatives collateral management

Derivatives and Securities Finance businesses are clearly aligning. Both business areas are looking to mitigate their capital consumption and maximise the use of collateral. Driven by increased Initial Margin demands in the OTC space, some firms are aligning their collateral management functions in order to maximise optimisation and use of collateral, whilst leveraging Tri-Party processing efficiency. This has significant impact on the firm’s operating model and could be an opportunity drive cost reduction and benefit realisation.