Asset Manager collateral strategy and vendor selection

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 management, eligibility and haircut management, collateral segregation, tri-party access, funds transfer pricing etc.
  • Controls model covering preventive and detective controls such as limits, reconciliations, Service Level Agreements etc.
  • Information model covering trade capture, inventory management, eligibility and haircut data, reference data (LEI, SSI)
  • Outsourcing model: what functions will be retained in-house, what could be out-sourced to collateral service providers or industry utilities
  • Identification of technology services needed to support automated functions
  • People model: identification of roles, responsibilities, skills and cost centres for residual manual functions

TFE can help you develop your collateral operating model quickly and efficiently based on our deep expertise in clearing and collateral, our library of collateral processes and function definitions, and our knowledge of collateral technology solutions, underpinned by our structured methods and tools.


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