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 that addresses critical issues such as:

• What regulation will impact which geographies / legal entities by when
• Choice of clearing venue(s)
• Selection of clearing brokers and Futures Clearing Merchants (FCMs)
• Collateral type and eligibility management (cash vs non-cash, considering performance drag)
• Collateral segregation model (OSA vs ISA vs full segregation)
• Collateral service capabilities (custody, transformation, optimisation, tri-party etc.)
• Margin calculation, forecasting, agreement and reconciliation
• Collateral selection, instruction, mobilisation, substitution, reconciliation
• Legal documentation
• Market infrastructure connectivity and messaging
• Infrastructure provisioning: build vs buy; vendor vs utility

TFE can help you develop your strategy quickly and efficiently based on our deep expertise in clearing and collateral, underpinned by our structured methods and tools.