New regulations and the continual evolution of market practices have resulted in unprecedented operational complexity and costs for market participants willing to invest in over-the-counter transactions. Market dynamics and the need for increased transparency are also pushing participants to implement a robust risk mitigation framework around over-the-counter transactions.
As a leading custodian with a diversified client base (buy and sell–side) and a strong experience in post-trade services (custody, fund administration, depositary bank …), we are ideally positioned to support our clients and address their challenges impacting the OTC landscape.
To address our clients’ requirements we offer a holistic and modular suite of solutions – Collateral Access.
Transaction processing and lifecycle management
Risk mitigation relies on robust trade management frameworks. Our solution encompasses post-trade processing and life cycle management services, portfolio reconciliation and reporting to trade repositories.
Valuation of OTC instruments requires strong capabilities and expertise and we believe the independence of OTC prices is important in in fast changing markets. We offer a comprehensive and sophisticated service, relying on recognised valuations partners, which can complement the rest of our OTC and administration services.
Collateral management solutions
Our comprehensive suite of solutions includes both tri-party and bilateral collateral management.
As a tri-party collateral agent, we are uniquely positioned to connect buy and sell-side market participants as well as central clearing counterparties – in order to create a community of collateral takers and collateral givers and develop a comprehensive pool of liquidity.
This service allows our clients to manage their collateral needs for all asset classes and all types of collateralised trades, helping them enhance operational efficiency. Our solution makes the most of our extensive custody network to enable us to mobilise collateral quickly when and where it is needed.
As a bilateral collateral management agent, we offer collateral services to buy-side market participants since 2011 as part of our entire OTC suite. We have designed a solution that answer to regulatory requirements but also that can bring flexibility to clients looking for an open and flexible model. Our solution supports a wide range of over-the-counter transactions such as derivatives, FX and repos.
Segregation of initial margin
“Margin Protect” is our solution to ensure full compliance with the regulatory requirements on initial margin for non-cleared OTC transactions, mitigation of counterparty risk, and asset safety. Through the framework of an ISDA-compliant Account Control Agreement, and based on our robust and efficient custody model, we assist the pledger and the secured party with the segregation of the initial margin, whether paid in securities or cash.
This offer complements the rest of our Collateral Access suite of services as it can be integrated with our tri-party collateral management solution or bundled with our trade processing and valuation services.