COLLATERAL MANAGEMENT PARADIGM
19TH - 20TH JULY 2018
The interaction of numerous regulatory frameworks such as the European Market Infrastructure Regulation (EMIR), the Uncleared Margin Rules,
Basel III (Capital Requirements Regulation (CRR) and Capital Requirements Directive (CRD IV), and the Securities Financing Transaction Regulation (SFTR) have ushered in a regulatory storm that has caused havoc within the banking and financial services industries. In order to weather the regulatory storm, banking and nancial services firms must re-evaluate their collateral management operations and strategies. The optimisation, allocation and transmission of collateral are now mandatory strategic considerations that firms must implement in order to achieve efficiency collateral management and operational efficiency.
At a minimum this requires consideration of issues such as ensuring effective pre-trade optimisation controls, ensuring transparency of collateral requirements and collateral inventory, and netting of collateral exposures. Firms need to ensure that they are moving towards streamlined Straight Through Processing (STP) by reviewing segregation of collateral procedures, monitoring open collateral positions and re-hypothecated positions, modelling future collateral requirements, effectively reporting collateral demands, and ensuring robust netting, valuation, and pricing procedures. This one and-a-half day training event seeks to comprehensively guide attendees through all the latest regulatory compliance, operational, strategic, and technological issues affecting collateral management functions throughout the European Union (EU).
•Highly comprehensive training course materials (training manual, training materials, PowerPoint presentations, definitions booklet).
•Highly interactive sessions with the training course expert which can reflect the attendee’s business perspectives.
•Pre-course questionnaire to identify the attendee’s key course objectives.
•Post-course follow up to ensure all key course objectives have been met.
•Unique insights into collateral management strategies and technologies.
MODULE 1: AN OVERVIEW OF THE EXISTING REGULATED COLLATERAL ENVIRONMENT
•Regulatory Clash: Basel III (Net Stable Funding Ratio (NSFR), Liquidity Coverage Ratio (LCR), Leverage Ratio) v. EMIR Clearing Mandates (Category 3 Firms (2019), Pension Funds (2020) v. Uncleared Margin Rules.
•Variation Margin (Cash v. LCR and NSFR Non-Cash Assets),
•The Impact of Future Initial Margin (IM) and Variation Margin (VM) Rules (2018, IM >e.1.5tr uncleared OTC derivatives, 2019, IM >e0.75tr uncleared OTC derivatives, 2020, IM and VM, OTC single stock equity and index options, 2020, IM >8bn uncleared OTC derivatives).
•Advanced Bank Recovery and Resolution Planning and Bail-in Requirements.
MODULE 2: THE SECURITIES FINANCING TRANSACTION REGULATION
•The Securities Financing Transaction Regulation (SFTR) Timeline, Firms Affected, Impacted Transactions, Operational Impact.
•Securities Financing Transaction (SFT) Reporting(Counterparty Classifications, Collateral Composition, Collateral Reuse, Collateral Haircuts, T+1 Reporting, Investor Reports).
•SFT Disclosure Obligations (SFTs and Total Return Swaps (TRS) used and underlying rationale, Counterparty Selection Criteria, Acceptable Collateral, Collateral Valuation, Risk Management).
•SFT Collateral Reuse Obligations (Rehypothecation Rights and Notices, Notification of Rehypothecation Risks and Consequences).
MODULE 3: EFFICIENT COLLATERAL MANAGEMENT AND OPERATIONAL EFFICIENCY
•Collateral Upgrade, Transformation, and Optimization Strategies(Portfolio Margining, Matched Book Dealing, Internalisation, Margin Models, Collateral Upgrades).
•Automated Margin Call Management (Email Parsing, Margin Information, Collateral Management Integration).
•Enterprise-wide Collateral Management, Collateral Policies, Clearing Strategies, and Digitized legal agreements (e.g. Credit Support Annexes).
•Risk Management, Scenario, Resilience, Continuity Planning and Stress Testing Procedures.
MODULE 4: ACHIEVING STRATEGIC COLLATERAL OPTIMIZATION AND LIQUIDITY MANAGEMENT
•Increasing Collateral Efficiency Ratios, Cash-settled Daily Variation Margin calls and Predictive Analytics, Forward Looking Collateral Optimization.
•Building Internal Collateral Technology Functions v. Outsourced Collateral Technology Providers.
•Holistic Regulatory Collateral Management and Sourcing Increased Liquidity Requirements (Collateral Upgrade Trades, Portfolio Holdings, Portfolio Liquidation, Peer Networks).
•2019 and 2020 Regulatory Compliance Roadmap.
MODULE 5: COLLATERAL MANAGEMENT AND OPTIMISATION TECHNOLOGIES
•Centralisation, digitisation, and management of collateral documentation.
•Normalisation of trade valuations, data and inventory pricing, internal reporting.
•Margin call monitoring and execution, monitoring of collateral balances, reconciliation of trade portfolios.
•Collateral eligibility monitoring of inventory, allocation and recall of collateral, algorithmic and waterfall optimisation.
MODULE 6: A REVIEW OF FUTURE COLLATERAL TECHNOLOGY SOLUTIONS
•Artificial Intelligence (AI) Technology Solutions, Predictive Analytics, Collateral Management, and Unification of Post-trade Processing and Pre-Trade Analytics.
•Smart Data Models, Electronic Legal Contracts, and Digitisation of ISDA® Master Agreements and CSAs.
•Peer-to-Peer Buy-Side Tri-party Arrangements and Platformsand Centrally Cleared Institutional Tri-party Services.
•Blockchain Technologies, Distributed Ledger Technology (DLT), Smart Contracts, single standardised view of collateral in the Settlement Chain, and Automated Margin Calls.