Collateral management: the financial services industry speaks out
Post-trade services provider SIX Securities Services today launches a new study revealing current attitudes to collateral management. ‘Collateral Management: How Collateral Values Can Prevent The Next Crisis’ highlights the views of senior figures responsible for collateral management at 60 leading financial institutions in the UK, France and Germany.
The report is important reading for buy side firms, sell side firms, regulators and post-trade organisations. Key findings from the report include:
On the pricing structures of the post-trade industry
On the role of collateral management providers
On collateral management solutions
On the cost of collateral
On attitudes to collateral management today
On the state of the financial industry
Robert Almanas, managing director for international services, SIX Securities Services, comments: “Collateral is now of critical importance to financial institutions. The collateral lockdown brought about by Dodd-Frank, EMIR and Basel III means collateral management – for so long consigned to the back office – is now an issue of board-level concern. Good collateral management is not just about keeping an institution’s operations as efficient as possible but ensuring that they are also simpler and more secure than in the past.
“When deciding upon a collateral management provider, firms should look to a wide range of variables including knowledge of local markets, real-time counterparty risk exposure, quality of the on-boarding process and multi-geography, multi-currency, multi-asset class functionality. Tri-party collateral management systems are also becoming increasingly coveted for their ability to safely ringfence an institution’s assets.
“The race for collateral is only becoming more intense. Those firms which equip themselves with real-time, tailored collateral management systems stand the best chance of success.”