Pre-Recorded ISDA Virtual Conference – Fundamentals of Collateral Management – International Swaps and Derivatives Association

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Tue, Jun 17 to Thu, Jul 17, 2025

Online

Pre-Recorded ISDA Virtual Conference – Fundamentals of Collateral Management

Member US$695.00

Non-Member US$795.00

Collateral risk mitigation regulation has evolved around the world, and the field of collateral operations is becoming more complex with day-to-day operations.

This comprehensive 2-Day virtual ISDA training in Collateral Management was developed to help participants learn (i) the terminology of collateral, securities, and related documentation, (ii) relevant regulatory history and current market practice, especially with regard to the post-Uncleared Margin Requirements landscape, and (iii) a practical explanation of tasks and responsibilities for OTC margin managers.

This is a pre-recorded ISDA Virtual Conference:

Event was live on June 11, from 9:00 AM – 12:15 PM EDT
The recording will be available until July 17, 2025

Tags: Collateral Management, Collateral Optimization, Operations

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Tuesday, June 17, 2025

Print Agenda

9:05 AM Introduction, Welcoming Remarks and Course Overview

9:10 AM Module 1: Collateral, Margin and Master Agreements

The function(s) of collateral
What types of financial instruments use collateral and why?
The difference between “margin” and “collateral”
Understanding the usage of “exposure” instead of “balance due” on master trading agreements margin calculations
Why we need collateral even with trading limits
How are documents negotiated and who are the parties involved?
Different types of collateralized products and contracts
Explore how collateral management works with other areas within your organization
Posting or receiving collateral on different contract types

9:45 AM Module 2: Vocabulary of Margin Calls and Introduction to Credit Support Annexes (CSAs)

What is a Margin call?
What does mark-to-market, notional and tenor/maturity mean for trades and what is the impact of each of these on the daily margin call?
“In the Money” and “Out of the Money” and calculating exposure and VM
VM, IM, and IA – the differences and the intersections of each
Frequency of margin calculations and collateral being posted and/or received
What is a Credit Support Annex and how many kinds are there? Part 1
Choice of law
When can rehypothecation be used and can it not be used?

10:15 AM Break

10:25 AM Module 3: The Credit Support Annex Vocabulary

Valuation Agent and Date
Regimes
Base Currency and Termination Currency
Eligible Collateral
Delivery Amount and Return Amount
Threshold
Minimum Transfer Amount (MTA)
Rounding
Notification and Resolution Times
Local Business Day
Transfer Timing
Notices
Disputes/Differences
Portfolio Reconciliation (“Port Rec”) and Resolution Time
Condition Precedent: Defaults, Termination Events and Additional Termination Events; Fish or Cut Bait Clause
Fails, defaults, and cure periods

10:55 AM Module 4: Eligible Collateral

Overview and associated risks of Cash, Equities and Fixed Income
Ratings
Haircuts, notional/face value, price, maturity, and haircut algebra
Standardization of terms and eligible collateral under Uncleared Margin Requirements (UMR)
Substitutions
Interest and Negative Interest
Proceeds, coupons, and corporate actions
Liquidity and Optimization
Eligible collateral considerations: documentation, automation and data standards

11:50 AM Recap and Questions

12:00 PM Day 1 Concludes

Thursday, February 27, 2025

9:00 AM Welcome Back and Recap of Day 1

9:05 AM Module 5: Post-2008 Regulations and Risk Management

Average Aggregate Notional Amount (“AANA”) and being “in scope” for UMR regulation
How does FX risk come into play with collateral? How does an FX haircut mitigate that?
"Wrong-Way” risk: how to make sure you are not increasing counterparty risk
European Market Infrastructure Regulation (“EMIR”) vs. Dodd-Frank Act (“DFA”): Differing regimes have different rules and operational practices
What happens when regulations fight? “Strictest of” process
How many kinds of Credit Support Annexes are there? Part 2
1. "Legacy" 1994/1995 CSA/CSD (and BSA)
2. VM CSA/CSD: 2016- Phase 1, 2017 “VM Big Bang” regulatory compliant Exposure CSAs
3. IM CSA/CSD/CTA: 2016-forwards; IM phase-in based on AANA and regime deadlines; custodians required
4. Umbrella documents for asset managers
IM Monitoring

9:35 AM Module 6: Custodians, Initial Margin and Multiple CSA Management

IM CSA/CSD and IM CTA + Security Agreement: Designed to govern IM and the custodians used by each party
IM Thresholds: 50mm uniform Threshold per entity/corporate group, based on original master agreement pairings
IM Eligible Collateral Schedule
ISDA SIMM, and when GRID is used
Independent Amount vs. Initial Margin
IA and IM: Distinct, Allocated vs. Greater Of and managing VM and IM CSA
Custodial Agents: Account control agreement, security agreement, KYC requirements
Triparty vs. third party collateral posting
What happens when you are not using the same custodians?
Operational efficiency across CSAs and monitoring
How can automation and Straight Through Processing (“STP”) help with daily tasks?
Reviewing and upgrading review your legacy systems for regulatory compliance, efficiency, data, risk

10:20 AM Break

10:30 AM Module 7: Daily Operations Part 1

Onboarding new and amending existing contracts
Margin Calculations

1. Legacy CSA exposure calculation
2. VM CSA Exposure margin calculation
3. IM CSA SIMM Calculation for post and collection
4. IA/IM review for Greater Of/Allocated
5. IM Monitoring for clients who chose BCBS/IOSCO relief

Collateral Posting for Legacy, VM/IA, IM/IA, bilaterally or to custodians/segregated accounts

1. Delivery Amount in or out
2. Return Amount in or out
3. Substituting collateral: maturing items, optimization, amendments to schedules

Data inputs/outputs

11:30 AM Module 8: Daily Operations Part 2

Problem management
Chasing fails for deliveries or returns
Dispute resolution and investigation (trades, securities valuation, or contract data conflicts)
Portfolio reconciliation (“Port Rec”)
Operational controls (Was the cash sent? Were the securities received? Are there any unexplained mark-to-market jumps?)
Systems controls (feeds for trades, pricing, ratings, margin calls)
Eligibility controls for posted collateral
Risk reporting and alerts
Regulatory reporting
Defaults and Notice of Exclusive Control: Alerting internal teams and custodians, or providing information to teams and regulators
Qualified Financial Stay rules and impact on Close-Out and Setoff

12:00 PM Course Recap

12:15 PM Course Concludes

Agenda is subject to change.

Registration fee is for one person to attend the entire event. Pass may not be split between multiple attendees.
Groups of three or more attendees from the same firm can receive a 20% discount on event registrations. To register your group, please email conferences@isda.org