Sep 20, 2013
• DTCC Connection
Collateral Management
DTCC's Mark Jennis and Mathew Keshav Lewis
Summary
If you Google “collateral,” the top
search result is a 2004 thriller starring
Tom Cruise and Jamie Foxx. While
collateral in the financial sense may not
bring to mind the same level of action
or adventure, the reality is surprisingly
dynamic. Sweeping and rapid changes
are occurring in financial markets that
are having a significant impact on
the management, mobilisation and
transformation of collateral.
Collateral has a contradictory
reputation. It is remembered as the
trigger of massive financial losses in
the acute phase of the financial crisis
in 2008.
But it is also viewed as an
important part of the solution to the
problems highlighted by the crisis.
Policymakers around the world have
enacted new rules, including the
Dodd-Frank Act in the United States,
the European Market Infrastructure
Regulation (EMIR) and the Basel III
regulations in Europe, all of which have
implications for the markets in collateral.
Download the Congressional Testimony: Collateral Management