Regulatory margin requirements and capital and liquidity issues mean collateral processing and inventory efficiency have become imperative for sell- and buy-side institutions.
ISDA has collected member views to develop a new paper highlighting examples of how firms are applying collateral optimization now and opportunities for future development.
ISDA interviewed several of its members in 2021, covering the following preliminary questions:
- How do you define collateral optimization?
- For end users: Do you have a collateral optimization program? If so, what are some of the challenges and benefits? If not, why?
- For vendors, infrastructure providers, administrators and triparty providers: What services do you provide and what goals and objectives are you helping your clients achieve?
- What could the industry do to promote and implement collateral optimization more widely? What could ISDA do?
The paper is intended to inspire firms to implement or improve collateral optimization programs and to participate in ISDA working groups to help further develop industry practices. The paper sets out various perspectives, including:
- The holistic view taken by a sell-side institution, which includes data sharing and a collaborative reporting structure;
- How a buy-side firm has evolved its use of collateral optimization, including collateral operations and legal resources;
- The role of triparty providers; and
- The needs of buy-side firms and the challenges they face.
To download the full paper, please fill out the details below:
This contact form is available only for logged in users.
Latest
ISDA Market Practice Note for the Rebasing of European Inflation Indices
ISDA Market Practice Note for Rebasing of the: FRC - Excluding Tobacco-Non-Revised Consumer Price Index EUR - Excluding Tobacco-Non-revised Consumer Price Index ITL - Inflation for Blue Collar Workers and Employees-Excluding Tobacco Consumer Price Index SEK – Non-revised Consumer Price...
Guidance for EU IM Model Application for ISDA SIMM®
EU financial and non-financial EU counterparties exchanging IM based on ISDA SIMM® should have already submitted an initial application for authorisation to their competent authority (CA), and ECB if applicable. If not, they should do so timely to ensure continued...
Joint Response on Stress Testing Framework
On February 23, ISDA, the Bank Policy Institute, the American Bankers Association, the Financial Services Forum, the Securities Industry and Financial Markets Association and the US Chamber of Commerce jointly responded to the US Federal Reserve’s consultation on the stress...
Joint Letter on Italian 2026 Budget Law
On February 23, ISDA, the Association for Financial Markets in Europe and the International Securities Lending Association jointly sent a letter to the Italian tax authorities about changes to withholding tax on dividends made in the 2026 budget law, which...
