Global Inventory Management Whitepaper - The Central
Nervous System of Financial Institutions in the New Collateral
Global inventory management has become critical to both buy side
and sell side firms transacting in collateralized business lines in
This paper and infographic by Martin Seagroatt and Gilbert Scherff
maps out an architecture for a new more integrated, automated and
industralized collateral ecosystem.
Solving Collateral Whitepaper - BCBS IOSCO Uncleared
Margin Rules - How to Adapt (2016)
The forthcoming BCBS IOSCO uncleared margin rules are set to make
the collateral management process far more demanding than in the
current operating environment.
This paper summarises the rules and looks at some of the challenges
they create for collateral managers and operations teams. It
outlines some of the system changes that need to take place from a
technology point of view and offers a list of key action points
firms should start thinking about.
Is Collateral Optimisation a Big Data Problem?
There is currently something of a big data revolution taking place
as processing speeds increase and hardware costs decrease. Many
banks already perform pre-trade data runs, generating millions of
scenarios when performing Monte Carlo simulations to calculate
This paper looks at whether big data scenario analysis can be
applied to collateral optimisation. It also evaluates the
techniques that firms can employ to perform portfolio wide
Buy Side Collateral Management: Challenges and
The current volume of regulatory change can seem overwhelming to
many buy side firms trading Derivatives.
The move to trading via CCPs has raised a number of new challenges
around the collateral management
process that buy side firms must deal with.
This whitepaper covers the issues that many buy side firms are
facing around collateral usage.
It looks at the choices the buy side must make, and the challenges
to overcome. The paper also looks at new opportunities to reduce
costs and generate alpha from effective collateral management.
In addition, the whitepaper argues that efficient, proactive
collateral management and collateral optimisation will
become a competitive differentiator and a way to maintain fund
Future Trends in Optimisation: Collateral,
Regulatory Capital and CCP Selection (2013)
Financial firms are currently experiencing significant
regulatory and cost pressures due to Basel III, Dodd Frank, and
This is leading to a search for ways to optimize various aspects
of trade types that involve some level of counterparty credit risk
(derivatives, securities lending, repo).
This whitepaper looks at how financial firms can optimize
trading decisions based on:
• Regulatory Capital Optimization: What is the cost of
capital per unit of P&L? (RWA, CVA, Balance Sheet Usage)
• Collateral Optimization: What
are the Funding Costs?
• Counterparty Optimization: Is it more profitable to
trade bilaterally or via a CCP? If via a CCP then which CCP is
• Trade Type Optimization: Can the firm generate more
P&L by deploying an asset in a securities loan, repo, or to
collateralize a derivative?
The paper discusses how to calculate the different optimization
types and how they are interrelated.
Whitepaper: Collateral Optimisation - Beyond
Cheapest to Deliver and the Big Red Button
This whitepaper discusses some of the latest advances in
collateral optimisation techniques. It also details how
optimisation has moved on from cheapest to deliver
In addition, the paper describes some of the limitations around
collateral optimization and provides a list of questions financial
firms should ask when implementing an optimisation project.