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.

If you think TFE could help your business please get in touch