Global Collateral Management Course

 Location: London (Central)

 Dates: 04.12.2012 - 05.12.2012  Duration: 2 Days  Price: 1,995.00 GBP

This course explains the rationale and current best-practice functioning of collateral management programmes for financial institutions. It is designed to build up a sufficient level of expertise to give attendees a good grasp of the legal, technical, process and economic issues and drivers affecting the profession. It is therefore suited to individuals who are either starting up a collateral management function or seeking to improve their unit's capability to add value to the front and middle offices through adoption of more efficient collateral management processing.

Course categories:Back Office Courses, Securities Services/ Securities Finance, Back Office Inhouse Courses , Securities Services/ Securities Finance Inhouse

COVERED TOPICS

Definitions of Collateral and Exposure

Collateral as a concept
The basic economic impact

Exposure sources

Securities lending
Repos
Loans
OTC derivatives
Exchange-traded derivatives
Equities settlements
FX
Commodity financing
Overdrafts

Exposure types

Counterparty
Mark-to-market
Potential future exposure

Business Drivers and Risks

Improving deal terms
Expanding dealing volumes
Generating additional revenues
Legal risk
Correlation risk
Market risk
Concentration risk
Counterparty risk
Operational risk
The effect of collateral on risk

Regulatory Capital

Regulatory guidelines
Regulatory capital treatment with and without collateral
Sample capital cost savings with collateral
Capital adequacy calculations
Current and future regulatory capital requirements

 

Exercise: Regulatory Capital

The Legal Framework for Global Collateralisation
Choice of law issues
Perfection
Enforceability
Law reform and regulator's requirements for collateral legal opinions
Title transfer and rehypothecation

Setting up the Function
Organisational requirements
Single operations centre
Distributed processing
Infrastructure priorities
Staffing and productivity
Systems requirements
"Buy" versus "Build" decisions
Vendors
Bilateral versus tri-partite
Policies and procedures
Agreement parameters
Risk management

Tri-Partite Collateral Management

Development of tri-party collateral
Mechanics of tri-party collateral in securities lending and tri-party repos
Fixed income versus equity
Legal aspects
Infrastructure requirements

 

Exercise: Collateral Allocation

Volatility, VAR Aan Margining Strategies

Volaility
VaR and VaR-span scenarios
Margin bases
Flat
Exposure-based
Value-at-risk
OTC versus exchange-traded margining
Margin timing

The ISDA Credit Support Annex

Agreement parameters
Haircuts
Thresholds
Minimum transfer amounts
Independent amounts
Rounding

The OTC Collateral Process

Portfolio identification and reconciliation
Exposure calculation
Margin calls
Receiving collateral
Posting collateral
Substitutions

Optimisation

Locating the "Cheapest-to-Deliver"
Pooling of collateral assets
Collateral opportunity cost
Trading the collateral market
Tracking rehypothecation

 

Exercise:Optimisation

Operational Risks

The implications of different forms of collateral
Operational risk techniques
Process decomposition and point of failure analysis
Self assessment
Statistical analysis
Managing operational risk

Summary and Questions

REGISTRATION & PRICING INFORMATION

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Price: 1,995.00 GBP
Location: London (Central)
Event date: 04.12.2012 - 05.12.2012
Event duration: 2 Days
Event time: 09.00 h - 17.00 h

ADDITIONAL DATES

CONTACT US
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Email: info@financialveritas.com

Phone: +44 208 133 5917

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