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DTCC's Mark Jennis and Mathew Keshav Lewis | September 20, 2013


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