Register for this Complimentary Webinar
Sponsored by SWIFT
Reducing Counterparty Risk & Increasing Transparency through Electronic Messaging for Margin Calls
In this Webinar, industry experts explain how financial institutions can utilise electronic messaging for margin call communication to improve operational efficiency and increase transparency.
The communication of bilateral margin calls is one of the remaining areas in need of automation within the collateral management processing lifecycle. Currently, many financial institutions rely on fax or email to communicate collateral calls and this manual process introduces operational risk and additional costs that impede efficient processing practices. The availability of new standardised messages and communication solutions enables the automation of margin call communication.
For many buy-side and sell-side firms, the use of electronic messaging and standard messages is a major part of plans to improve collateral management infrastructure to achieve greater operational efficiencies, reduce counterparty risk and costly errors.
Electronic messaging for margin calls is also a major part of the wider industry movement to adopt best practices for collateral management procedures in light of demands from regulators for transparency and improved risk controls. ISDA has identified the use of electronic messages for collateral call communication as a goal and new best practice outlined in its Roadmap for Collateral Management and has also published a document that directly addresses electronic messaging in its paper, “Standards for the Electronic Exchange of OTC Derivatives Margin Calls.” Collateral management is also a major theme of the Fed Letters, which are now requesting more direct involvement from the buy side in meeting industry goals.
In a focused webinar, a group of top-notch collateral management experts how financial institutions are automating collateral call communication using the messaging standards and solutions available to reduce counterparty risk, increase efficiency and meet transparency requirements in the short and long-term.
The panel of speakers will also discuss how use of electronic messaging for margin calls will play a major role in the overhaul of collateral management infrastructure to bring operations up to speed with new industry best practices.
The panel will discuss the following questions:
• Why is collateral call communication still manual? And what are the drivers for automating this process now?
• What are the obstacles that have prevented automation of collateral calls previously? What obstacles continue to prevent progress going forward?
• What are the messaging standards available in the market for automating margin calls? (SWIFT to give overview of its messaging standard and adoption procedures)
• What do individual institutions need to do to adopt market messaging standard solutions? What is the process and time frame?
• How will central clearing and future regulatory reform impact the need and use of electronic messaging for collateral calls and related collateral management processes?
• How does automation of collateral calls help a financial institution improve its internal operational efficiency and counterparty risk management capabilities?
• How does automation of collateral calls help a financial institution comply with industry best practices and new regulation?
• What is next for electronic messaging for margin calls? Will solution providers expand to other asset classes such as repurchase agreements?
A Q&A session with the audience and panel speakers will be held after the roundtable discussion to allow for interaction between the panel and attendees.
Suggested Speaker Line-up: To be announced shortly
Please register for this event here.
