While increased use of collateral in the over-the-counter derivatives markets has helped reduce counterparty credit risk, the turmoil in the financial markets last year emphasised once again just how important it is for institutions to know at all times exactly where they are in terms of exposures and collateral positions.
The most effective prevention against disputed margin calls is an ongoing portfolio reconciliation process. However, as the use of collateral has grown, the reconciliation of
The week on Risk.net, October 6-12, 2017Receive this by email
- Quantile, TriOptima face off in cleared swaps compression battle
- Leaked EU doc could shield legacy swaps from clearing grab
- ABS set for revival under US Treasury’s liquidity buffer plans
- SGX, HKEX expect to be among first wave of Mifid II equivalence
- Industry hails potential US relaxation of margin timing rules