Collateral Management Services

Collateral management becomes banks’ top priority

Up to 15% of collateral available to financial institutions is left idle costing the global industry more than €4 billion a year, according to a study by Clearstream and Accenture.

Inefficiencies in banking collateral management systems prevent consolidation of collateral pools resulting in institutions which cannot monetise their available collateral limiting their operations or searching for increasingly expensive unsecured sources of funding.

The research was carried out in March this year but upcoming regulatory changes are set to make collateral even more expensive and so will lead to an even greater cost to the industry.

Our triparty collateral management solution

Our triparty collateral management solution offers safekeeping and monitoring of your securities held as collateral to cover exposures of any bilateral principal agreement.

These services maximise security and full flexibility by outsourcing the coverage to Clearstream, a neutral collateral agent.

Collateral receivers gain:

• Efficient and accurate monitoring of credit exposure
• Reduction of operational risk
• Business growth by outsourcing to an efficient agent
• Simplicity and ease of service through just one collateral management service for any kind of exposure.

Collateral givers gain:

• Efficient use of collateral compared to expensive use of cash margins
• Reduction of operational risk
• Back-office efficiency from outsourcing to a collateral agent
• Efficient collateral optimization cross-product and cross-location.