A radically new market environment requires comprehensive data-driven digital collateral management

Abstract

Global and domestic financial market players today fully understand that their world has changed. The financial crisis provoked a wave of complex, sometimes contradictory, and still unfinished rules and regulations ranging from Dodd-Frank in the USA to Basel III and the European Market Infrastructure Regulation on a broader scale. The reason for this, of course, has been to try to increase market stability and strength, improve transparency and accountability, and minimise operational, liquidity and counterparty risk. The result has been a global squeeze on collateral, prompting new demand for more efficient and cost-effective collateral management (CM) tools and processes delivered through an integrated operating model.