A Complimentary Webinar April 24th 2011 (10am EST / 3pm BST)
In a complimentary webinar, industry experts explore the practical challenges and opportunities firms face when optimizing collateral movements to support increased collateral demands for clearable swaps and bilateral OTC derivatives
The introduction of CCP clearing for OTC derivatives will require market participants to post a greater amount of margin and from a limited list of eligible asset types. This increase in collateral requirements, coupled with greater demand for capitalization with new regulation, is driving collateral optimization initiatives within firms who know they need to get the most out of their collateral pools.
There are different levels of collateral optimization ranging from CSA re-negotiation, improvements in inventory management to identify the cheapest-to-deliver assets, to much more sophisticated initiatives where firms have clearly identified an opportunity in which strategic margin management can contribute to the front office’s P&L. However, collateral optimization strategies of all types encounter operational, technological and cultural challenges.
In a webinar, experts will discuss the practical challenges faced when tackling collateral optimization to support new needs of the evolving market. The panel will review the following:
- Market drivers: why optimization is important now? What are the regulatory drivers including new capitalization and collateral management requirements from Dodd Frank, Basel III and EMIR?
- What is optimization? What does optimization mean for different firms?
- Organization: What organisational restructuring needs to take place to support optimization? Is centralization of collateral management across product silos essential?
- Culture: What are the cultural challenges? How can a firm get their collateral teams and trading desk communicating with clear collaborating processes in place?
- CSAs & Legal Docs: How to get started with CSAs and legal documentation to identify cheapest
- to deliver assets?
- Practical Challenges: Managing funding rates? Managing volume with variety of asset types and contract types?
- Operations & Technology: What are the system challenges and how to best use technology to support optimization? Is front to back office system integration possible?
- Collateral Transformation: How does optimization play a part in collateral transformation or collateral upgrade functions? What are the practical challenges and potential risks?
- Profit potential? How are firms optimizing collateral so return rates can contribute to the front office’s profit and los? Are there any ways in which optimization can improve a firm’s competitive edge?
- Looking Ahead: How can firms plan optimization projects amidst ongoing market changes and upcoming initiatives? How will the new standard CSA (SCSA) impact optimization going forward?
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.
Panel of Speakers:
- Ted Allen, Vice President – Capital Markets Collateral at SunGard
- Ewen Crawford, Head of Derivative & Cash Management Core Ops Global Head of Collateral Management at Nomura
- Bilgehan Aydin, Global Head of Collateral Management & Valuations Ops. at HSBC Bank UK
- Nick Newport, Director at InteDelta Ltd
- Jason Orben, global product head of derivatives collateral management, at JPMorgan Worldwide Securities Services
Discussion Moderated by Julia Schieffer, Founder & Editor-in-Chief of DerivSource.com
Register here: https://deriv.webex.com/deriv/onstage/g.php?t=a&d=959837944
Space is limited so register early.