Collateral Management

Post-crisis regulatory reform is driving a critical need for advanced collateral management. The parallel implementations of the Basel III capital adequacy and liquidity framework and the far reaching over-the-counter (OTC) derivatives markets reforms (Dodd-Frank, EMIR and others) create a substantial collateral squeeze.

Standardized derivatives should be cleared through central counterparties, and higher capital charges and onerous margin requirements will apply for non-cleared derivatives. Apart from the massive increase in margin requirements, the demand for high quality securities is further fueled by the drying up of unsecured money markets and Basel III's requirement that banks hold a substantial liquid assets buffer to meet the liquidity coverage ratio.

SunGard offers innovative technology solutions for enterprise-wide collateral management and optimization. Our Apex Collateral solution helps financial institutions make the best use of their collateral assets and handle the ever-increasing volume and complexity of collateralized trading activities.

If you are an investment bank, broker-dealer, asset manager, clearing house, custodian or insurance company, SunGard helps you to create a sustainable competitive advantage in the collateralized trading business by:

  • Centralizing the management, trading and optimization of collateral in one profit center on a single platform
  • Reducing the cost of funding collateral by optimizing the allocation of collateral to the various requirements
  • Avoiding collateral sitting and improving revenues through proactive collateral trading
  • Complying with the OTC market reform regulations and handling the margining processes for cleared and bilateral trades
  • Achieving operational efficiency through automated cross-product collateral operations

Our Expertise

Ted Allen

SunGard's capital markets business
The traditional role of a collateral management team - managing a portfolio of CSAs – has now expanded far beyond that scope.
Blog Post

Ed Hellaby

SunGard's capital markets business
This report examines best practice measures for enhancing efficiency of collateral management processes in light of the evolving regulatory environment.
Report

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