{"id":486,"date":"2010-06-17T03:42:32","date_gmt":"2010-06-17T08:42:32","guid":{"rendered":"http:\/\/www.privatebanking.com\/blog\/?p=486"},"modified":"2010-06-17T03:43:55","modified_gmt":"2010-06-17T08:43:55","slug":"collateral-management","status":"publish","type":"post","link":"https:\/\/www.privatebanking.com\/blog\/2010\/06\/17\/collateral-management\/","title":{"rendered":"Collateral Management"},"content":{"rendered":"<div class=\"Section1\">\n<p class=\"MsoNormal\" style=\"margin: 0cm 0cm 0pt; text-align: justify;\"><span style=\"font-family: Arial;\"><span style=\"font-size: x-small; font-family: arial;\"><span style=\"font-size: small;\">OTC Derivatives, Repos and Securities Lending and Borrowing are now recognised as very sensitive areas inside many Securities Operations departments, whether on the Buy or Sell sides. <\/span><\/span><\/span><\/p>\n<p class=\"MsoNormal\" style=\"margin: 0cm 0cm 0pt; text-align: justify;\"><span style=\"font-family: Arial;\"><span style=\"font-size: x-small; font-family: arial;\"><span style=\"font-size: small;\"> <\/span><\/span><\/span><\/p>\n<p class=\"MsoNormal\" style=\"margin: 0cm 0cm 0pt; text-align: justify;\"><span style=\"font-family: Arial;\"><span style=\"font-size: x-small; font-family: arial;\"><span style=\"font-size: small;\">As the demise of Lehman Brothers showed, besides a number of unpublicised hiccups, Collateral Management within these activities is a critical function in mitigating counterparty risk and in ensuring exposures are covered by the proper<span> <\/span>taking\/giving of collateral. <\/span><\/span><\/span><\/p>\n<p class=\"MsoNormal\" style=\"margin: 0cm 0cm 0pt; text-align: justify;\"><span style=\"font-family: Arial;\"><span style=\"font-size: x-small; font-family: arial;\"><span style=\"font-size: small;\"> <\/span><\/span><\/span><\/p>\n<p class=\"MsoNormal\" style=\"margin: 0cm 0cm 0pt; text-align: justify;\"><span style=\"font-family: Arial;\"><span style=\"font-size: x-small; font-family: arial;\"><span style=\"font-size: small;\">This course looks at Collateral Management in OTC Derivatives in particular as well as Repos and Securities Lending and Borrowing. Risk identification, control, documentation, types of collateral, gross and net exposure and other practical aspects are covered as well as the conceptual framework and practical problems eg the treatment of corporate actions on a borrowed\/lent<span> <\/span>position.<\/span><\/span><\/span><\/p>\n<p class=\"MsoNormal\" style=\"margin: 0cm 0cm 0pt; text-align: justify;\"><span style=\"font-family: Arial;\"><span style=\"font-size: x-small; font-family: arial;\"><span style=\"font-size: small;\"> <\/span><\/span><\/span><\/p>\n<p class=\"MsoNormal\" style=\"margin: 0cm 0cm 0pt; text-align: justify;\"><span style=\"font-family: Arial;\"><span style=\"font-size: x-small; font-family: arial;\"><span style=\"font-size: small;\">A basic knowledge of and work experience in the Securities Industry is assumed as well as an awareness of Securities Lending or Repos. Specific knowledge of Securities Lending and Repos is not assumed. <\/span><\/span><\/span><\/p>\n<p class=\"MsoNormal\" style=\"margin: 0cm 0cm 0pt; text-align: justify;\"><span style=\"font-family: Arial;\"><span style=\"font-size: x-small; font-family: arial;\"><span style=\"font-size: small; color: #0080ff;\"> <\/span><\/span><\/span><\/p>\n<p><strong><span style=\"font-family: Arial;\"><span style=\"font-size: small;\"><span style=\"color: #0080ff;\">Content<\/span><\/span><\/span><\/strong><\/p>\n<p class=\"MsoNormal\" style=\"margin: 0cm 0cm 0pt;\"><span style=\"font-size: x-small; font-family: arial;\"><strong><span style=\"font-family: Arial;\"><span style=\"font-size: small;\"> <\/span><\/span><\/strong><\/span><\/p>\n<p class=\"MsoBodyText\" style=\"margin: 0cm 0cm 0pt 36pt; text-align: left; text-indent: -18pt;\" align=\"left\"><span style=\"font-weight: normal; font-family: Symbol;\"><span><span style=\"font-size: x-small; font-family: arial;\"><span style=\"font-size: small;\">\u00b7<\/span><span style=\"font-style: normal; font-variant: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-size-adjust: none; font-stretch: normal; font-family: 'Times New Roman';\"> <\/span><\/span><\/span><\/span><span dir=\"ltr\"><span style=\"font-weight: normal; font-family: Arial;\"><span style=\"font-size: x-small; font-family: arial;\"><span style=\"font-size: small;\">what is collateral &amp; the purpose it serves<\/span><\/span><\/span><\/span><\/p>\n<p class=\"MsoBodyText\" style=\"margin: 0cm 0cm 0pt 36pt; text-align: left; text-indent: -18pt;\" align=\"left\"><span style=\"font-weight: normal; font-family: Symbol;\"><span><span style=\"font-size: x-small; font-family: arial;\"><span style=\"font-size: small;\">\u00b7<\/span><span style=\"font-style: normal; font-variant: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-size-adjust: none; font-stretch: normal; font-family: 'Times New Roman';\"> <\/span><\/span><\/span><\/span><span dir=\"ltr\"><span style=\"font-weight: normal; font-family: Arial;\"><span style=\"font-size: x-small; font-family: arial;\"><span style=\"font-size: small;\">the various transaction types requiring collateral<\/span><\/span><\/span><\/span><\/p>\n<p class=\"MsoBodyText\" style=\"margin: 0cm 0cm 0pt 36pt; text-align: left; text-indent: -18pt;\" align=\"left\"><span style=\"font-weight: normal; font-family: Symbol;\"><span><span style=\"font-size: x-small; font-family: arial;\"><span style=\"font-size: small;\">\u00b7<\/span><span style=\"font-style: normal; font-variant: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-size-adjust: none; font-stretch: normal; font-family: 'Times New Roman';\"> <\/span><\/span><\/span><\/span><span dir=\"ltr\"><span style=\"font-weight: normal; font-family: Arial;\"><span style=\"font-size: x-small; font-family: arial;\"><span style=\"font-size: small;\">what causes exposure for financial institutions<\/span><\/span><\/span><\/span><\/p>\n<p class=\"MsoBodyText\" style=\"margin: 0cm 0cm 0pt 36pt; text-align: left; text-indent: -18pt;\" align=\"left\"><span style=\"font-weight: normal; font-family: Symbol;\"><span><span style=\"font-size: x-small; font-family: arial;\"><span style=\"font-size: small;\">\u00b7<\/span><span style=\"font-style: normal; font-variant: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-size-adjust: none; font-stretch: normal; font-family: 'Times New Roman';\"> <\/span><\/span><\/span><\/span><span dir=\"ltr\"><span style=\"font-weight: normal; font-family: Arial;\"><span style=\"font-size: x-small; font-family: arial;\"><span style=\"font-size: small;\">the different types of collateral &amp; their characteristics<\/span><\/span><\/span><\/span><\/p>\n<p class=\"MsoBodyText\" style=\"margin: 0cm 0cm 0pt 36pt; text-align: left; text-indent: -18pt;\" align=\"left\"><span style=\"font-weight: normal; font-family: Symbol;\"><span><span style=\"font-size: x-small; font-family: arial;\"><span style=\"font-size: small;\">\u00b7<\/span><span style=\"font-style: normal; font-variant: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-size-adjust: none; font-stretch: normal; font-family: 'Times New Roman';\"> <\/span><\/span><\/span><\/span><span dir=\"ltr\"><span style=\"font-weight: normal; font-family: Arial;\"><span style=\"font-size: x-small; font-family: arial;\"><span style=\"font-size: small;\">reasons for legal protection &amp; associated documentation<\/span><\/span><\/span><\/span><\/p>\n<p class=\"MsoBodyText\" style=\"margin: 0cm 0cm 0pt 36pt; text-align: left; text-indent: -18pt;\" align=\"left\"><span style=\"font-weight: normal; font-family: Symbol;\"><span><span style=\"font-size: x-small; font-family: arial;\"><span style=\"font-size: small;\">\u00b7<\/span><span style=\"font-style: normal; font-variant: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-size-adjust: none; font-stretch: normal; font-family: 'Times New Roman';\"> <\/span><\/span><\/span><\/span><span dir=\"ltr\"><span style=\"font-weight: normal; font-family: Arial;\"><span style=\"font-size: x-small; font-family: arial;\"><span style=\"font-size: small;\">the importance of proper agreement<span> <\/span>and record keeping. <\/span><\/span><\/span><\/span><\/p>\n<p class=\"MsoBodyText\" style=\"margin: 0cm 0cm 0pt 36pt; text-align: left; text-indent: -18pt;\" align=\"left\"><span style=\"font-weight: normal; font-family: Symbol;\"><span><span style=\"font-size: x-small; font-family: arial;\"><span style=\"font-size: small;\">\u00b7<\/span><span style=\"font-style: normal; font-variant: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-size-adjust: none; font-stretch: normal; font-family: 'Times New Roman';\"> <\/span><\/span><\/span><\/span><span dir=\"ltr\"><span style=\"font-weight: normal; font-family: Arial;\"><span style=\"font-size: x-small; font-family: arial;\"><span style=\"font-size: small;\">the collateral lifecycle<\/span><\/span><\/span><\/span><\/p>\n<p class=\"MsoBodyText\" style=\"margin: 0cm 0cm 0pt 36pt; text-align: left; text-indent: -18pt;\" align=\"left\"><span style=\"font-weight: normal; font-family: Symbol;\"><span><span style=\"font-size: x-small; font-family: arial;\"><span style=\"font-size: small;\">\u00b7<\/span><span style=\"font-style: normal; font-variant: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-size-adjust: none; font-stretch: normal; font-family: 'Times New Roman';\"> <\/span><\/span><\/span><\/span><span dir=\"ltr\"><span style=\"font-weight: normal; font-family: Arial;\"><span style=\"font-size: x-small; font-family: arial;\"><span style=\"font-size: small;\">components in collateral call calculation<\/span><\/span><\/span><\/span><\/p>\n<p class=\"MsoBodyText\" style=\"margin: 0cm 0cm 0pt 36pt; text-align: left; text-indent: -18pt;\" align=\"left\"><span style=\"font-weight: normal; font-family: Symbol;\"><span><span style=\"font-size: x-small; font-family: arial;\"><span style=\"font-size: small;\">\u00b7<\/span><span style=\"font-style: normal; font-variant: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-size-adjust: none; font-stretch: normal; font-family: 'Times New Roman';\"> <\/span><\/span><\/span><\/span><span dir=\"ltr\"><span style=\"font-weight: normal; font-family: Arial;\"><span style=\"font-size: x-small; font-family: arial;\"><span style=\"font-size: small;\">procedures for making &amp; receiving collateral calls<\/span><\/span><\/span><\/span><\/p>\n<p class=\"MsoBodyText\" style=\"margin: 0cm 0cm 0pt 36pt; text-align: left; text-indent: -18pt;\" align=\"left\"><span style=\"font-weight: normal; font-family: Symbol;\"><span><span style=\"font-size: x-small; font-family: arial;\"><span style=\"font-size: small;\">\u00b7<\/span><span style=\"font-style: normal; font-variant: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-size-adjust: none; font-stretch: normal; font-family: 'Times New Roman';\"> <\/span><\/span><\/span><\/span><span dir=\"ltr\"><span style=\"font-weight: normal; font-family: Arial;\"><span style=\"font-size: x-small; font-family: arial;\"><span style=\"font-size: small;\">procedures for handling collateral substitution &amp; income payments<\/span><\/span><\/span><\/span><\/p>\n<p class=\"MsoBodyText\" style=\"margin: 0cm 0cm 0pt 36pt; text-align: left; text-indent: -18pt;\" align=\"left\"><span style=\"font-weight: normal; font-family: Symbol;\"><span><span style=\"font-size: x-small; font-family: arial;\"><span style=\"font-size: small;\">\u00b7<\/span><span style=\"font-style: normal; font-variant: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-size-adjust: none; font-stretch: normal; font-family: 'Times New Roman';\"> <\/span><\/span><\/span><\/span><span dir=\"ltr\"><span style=\"font-weight: normal; font-family: Arial;\"><span style=\"font-size: x-small; font-family: arial;\"><span style=\"font-size: small;\">market-wide collateral management terminology<\/span><\/span><\/span><\/span><\/p>\n<p class=\"MsoBodyText\" style=\"margin: 0cm 0cm 0pt 36pt; text-align: left; text-indent: -18pt;\" align=\"left\"><span style=\"font-weight: normal; font-family: Symbol;\"><span><span style=\"font-size: x-small; font-family: arial;\"><span style=\"font-size: small;\">\u00b7<\/span><span style=\"font-style: normal; font-variant: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-size-adjust: none; font-stretch: normal; font-family: 'Times New Roman';\"> <\/span><\/span><\/span><\/span><span dir=\"ltr\"><span style=\"font-weight: normal; font-family: Arial;\"><span style=\"font-size: x-small; font-family: arial;\"><span style=\"font-size: small;\">primary risks and mitigating controls throughout.<\/span><\/span><\/span><\/span><\/p>\n<p class=\"MsoNormal\" style=\"margin: 0cm 0cm 0pt;\"><span style=\"font-size: x-small; font-family: arial;\"><strong><span style=\"font-family: Arial; color: red;\"><span style=\"font-size: small;\"><br \/>\n<\/span><\/span><\/strong><\/span><\/p>\n<p class=\"MsoNormal\" style=\"margin: 0cm 0cm 0pt;\"><span style=\"font-size: x-small; font-family: arial;\"><span style=\"font-size: small;\"><span style=\"color: #0080ff;\"><strong><span style=\"font-family: Arial;\"><br \/>\nDelegates<\/span><\/strong><span style=\"font-family: Arial;\"> <\/span><\/span><\/span><\/span><\/p>\n<p class=\"MsoNormal\" style=\"margin: 0cm 0cm 0pt;\"><span style=\"font-family: Arial;\"><span style=\"font-size: x-small; font-family: arial;\"><span style=\"font-size: small;\"> <\/span><\/span><\/span><\/p>\n<ul style=\"margin-top: 0cm;\" type=\"disc\"><span style=\"font-size: x-small; font-family: arial;\"><\/p>\n<li class=\"MsoNormal\" style=\"margin: 0cm 0cm 0pt; text-align: justify;\"><span style=\"font-family: Arial;\"><span style=\"font-size: small;\">those new to collateral management <\/span><\/span><\/li>\n<li class=\"MsoNormal\" style=\"margin: 0cm 0cm 0pt; text-align: justify;\"><span style=\"font-family: Arial;\"><span style=\"font-size: small;\">existing collateral management personnel who require a complete view as to what is involved.<\/span><\/span><\/li>\n<li class=\"MsoNormal\" style=\"margin: 0cm 0cm 0pt; text-align: justify;\"><span style=\"font-family: Arial;\"><span style=\"font-size: small;\">Securities &amp; Derivatives Operations, Back Office, and Custodian managers and staff<\/span><\/span><\/li>\n<li class=\"MsoNormal\" style=\"margin: 0cm 0cm 0pt; text-align: justify;\"><span style=\"font-family: Arial;\"><span style=\"font-size: small;\">Commercial and Investment Bankers involved in Securities Lending, Repos and OTC Derivatives.<\/span><\/span><\/li>\n<li class=\"MsoNormal\" style=\"margin: 0cm 0cm 0pt; text-align: justify;\"><span style=\"font-family: Arial;\"><span style=\"font-size: small;\">Fund Managers and Private Bankers involved in or considering Repos and Securities Lending and OTC Derivatives<\/span><\/span><\/li>\n<li class=\"MsoNormal\" style=\"margin: 0cm 0cm 0pt; text-align: justify;\"><span style=\"font-family: Arial;\"><span style=\"font-size: small;\">Dealers and Brokers<\/span><\/span><\/li>\n<li class=\"MsoNormal\" style=\"margin: 0cm 0cm 0pt; text-align: justify;\"><span style=\"font-family: Arial;\"><span style=\"font-size: small;\">Accountants,<span> <\/span>external Auditors, Lawyers and Compliance executives<\/span><\/span><\/li>\n<li class=\"MsoNormal\" style=\"margin: 0cm 0cm 0pt; text-align: justify;\"><span style=\"font-family: Arial;\"><span style=\"font-size: small;\">IT Executives involved in operating, selling or designing Collateral Management systems.<\/span><\/span><\/li>\n<li class=\"MsoNormal\" style=\"margin: 0cm 0cm 0pt; text-align: justify;\"><span style=\"font-family: Arial;\"><span style=\"font-size: small;\">Risk Managers and Compliance Executives<\/span><\/span><\/li>\n<p><\/span><\/ul>\n<\/div>\n<div>\n<table border=\"0\" cellspacing=\"0\" cellpadding=\"3\" width=\"300\" bgcolor=\"#7dbeff\">\n<tbody>\n<tr>\n<td>\n<p align=\"center\">Todays Date:<script type=\"text\/javascript\"><!--\ndatenow()\n\/\/ --><\/script> 17 June 2010<\/p>\n<hr \/>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"height: 50px;\" border=\"1\" cellspacing=\"3\" cellpadding=\"3\" width=\"300\" bgcolor=\"#7dbeff\">\n<tbody>\n<tr>\n<td><strong>Duration<\/strong><\/td>\n<td>2 days<\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><strong>London<\/strong><\/td>\n<td valign=\"top\">30 &#8211; 31 June 2010<br \/>\n16 &#8211; 17 November 2010<br \/>\n6 &#8211; 7 April 2011<br \/>\nDate should read 30 June &#8211; 1 July 2010<\/td>\n<\/tr>\n<tr>\n<td><strong>Fee<\/strong><\/td>\n<td>\u0408 980 + VAT<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<hr size=\"5\" \/><\/div>\n<p><span style=\"font-family: Arial; font-size: x-small;\">Email: <a href=\"mailto:mail@investmenteducation.net\">mail@investmentEducation.net<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>OTC Derivatives, Repos and Securities Lending and Borrowing are now recognised as very sensitive areas inside many Securities Operations departments, whether on the Buy or Sell sides. As the demise of Lehman Brothers showed, besides a number of unpublicised hiccups, Collateral Management within these activities is a critical function in mitigating counterparty risk and in &#8230; <a title=\"Collateral Management\" class=\"read-more\" href=\"https:\/\/www.privatebanking.com\/blog\/2010\/06\/17\/collateral-management\/\" aria-label=\"Read more about Collateral Management\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[316,315,314],"_links":{"self":[{"href":"https:\/\/www.privatebanking.com\/blog\/wp-json\/wp\/v2\/posts\/486"}],"collection":[{"href":"https:\/\/www.privatebanking.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.privatebanking.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.privatebanking.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.privatebanking.com\/blog\/wp-json\/wp\/v2\/comments?post=486"}],"version-history":[{"count":3,"href":"https:\/\/www.privatebanking.com\/blog\/wp-json\/wp\/v2\/posts\/486\/revisions"}],"predecessor-version":[{"id":489,"href":"https:\/\/www.privatebanking.com\/blog\/wp-json\/wp\/v2\/posts\/486\/revisions\/489"}],"wp:attachment":[{"href":"https:\/\/www.privatebanking.com\/blog\/wp-json\/wp\/v2\/media?parent=486"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.privatebanking.com\/blog\/wp-json\/wp\/v2\/categories?post=486"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.privatebanking.com\/blog\/wp-json\/wp\/v2\/tags?post=486"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}