Collateral systems provider 4sight and business and IT consultancy Rule Financial have published a new research paper on buy side collateral management. The paper, “Buy Side Collateral Management: Challenges and Opportunities”, details the new challenges around the collateral management process.
In addition, it looks at how buy side firms can ease the transition to the new cleared collateral model. The paper also discusses the technology solutions available in the market to support the new more demanding margining process.
“As ever, in solving the collateral conundrum, there is no substitute for mobilising as soon as possible,” comments Martin Seagroatt, one of the paper’s co-authors. “For those who have yet to decide on a collateral management strategy, the risks are becoming even greater for operating with a substandard, non-optimal system; incurring the high costs associated with non-compliance and inefficient tactical solutions. Firms that take an active approach and see collateral management as a core competency will outperform those taking a more passive stance.”