Keep up-to-date with our latest news and insights.

Cleared and OTC Derivatives Transforming the Collateral Landscape

ISDA recently re-launched their annual collateral survey* to assess the collateral usage and make up within the derivatives market. This captures the 20 Phase 1 firms posting regulatory IM/VM on uncleared derivatives for the first time. ISDA reports that collateral totalling $47 billion was posted and $47billion received for regulatory IM, compared to $16billion and […]

Doing more with less – STP/Zero-touch

Many Securities Finance businesses are under pressure to increase their straight through processing (STP) capabilities thereby reducing the need for manual intervention. With growing settlement volumes, it is not economically viable to increase headcount in support functions in a linear manner. As such, the desire to achieve a zero-touch post trade settlement environment continues to […]

Usain Bolt, Mo Farah and the race to reducing settlement cycles?

Usain Bolt’s reaction time from the gun is critical. He requires the ability to explode from the blocks, optimise momentum into the drive phase and then maintain maximum speed through to the finishing line. The race is too short for errors to be corrected and still win. Indeed, a huge proportion of Usain’s training is […]

We’ve moved…

The Field Effect has moved from Canary Wharf to the City. Our new offices are over in Clements Lane to give us more space and a central location. Our new mailing address is: The Field Effect 27 Clements Lane London EC4N 7AE Call us on: 020 3906 7369

The future state of securities financing: evolution or revolution

“The secret of change is to focus all of your energy, not on fighting for the old, but building the new”  – Socrates Most of us don’t like change change, particularly within the securities industry, most will try to actively avoid it. Consequently, market practices evolve at a glacial pace, all too often ignoring the […]

SFTR Scenarios & Key Considerations

Following extensive review of the SBL / Repo Landscape – including the actors involved, information flows and functional requirements, we have identified four SFTR reporting scenarios that firms will need to consider: Some firms will be looking to fully delegate the reporting function, including data enrichment before sending data to a Trade Repository.  Others will […]

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 […]

NSFR Impact Analysis – Mark Barnard

Implementation of the first tranche of funding ratios (LCR) was relatively painless. This potentially lulls us into a false sense of security when considering the next tranche – NSFR. Whilst LCR changed the funding profile of the industry, NSFR’s movement of the tenor of liquidity generation to greater than 6 or 12 months dependent upon […]

New Article: Trends & Challenges in Collateral Management

Simcorp asked David Field & Nick Stafford to write an article on the current trends and challenges in collateral management. Industry players tend to react too late to regulatory change, necessitating tactical and inefficient projects. For quite some time the focus for sell-side firms has been reducing costs, we see serious savings if steps are […]

SFTR dominates the ISLA Conference

There was lots of talk of SFTR impacts at the ISLA conference last week. It’s clear that the enormity of changes required to meet reporting requirements at both an industry and individual firm level are starting to concern market participants. Firms are at varying stages on their preparation timeline and there is still much to […]