The financial services industry is still sorting out the lessons to be learned from the collateral management struggle that has become a new reality for firms, according to Diana Shapiro, director, Citi.
While learning these lessons, firms have to move ahead, says Shapiro, who spoke to FTF News during the DerivOps North America conference in Chicago last month. She was a participant in the “Coping with Collateral Churn,” panel at DerivOps.
“I think, in the short term, they have learned to act now and to put in place the legal agreements as soon as possible,” Shapiro says about market participants. “So, as we get into the initial margin implementations for buy-side institutions, they’ll start to address that more actively and in advance with their counterparts. I think strategically the lessons are still being learned and they need to focus more on what the full impact is on their portfolios and how collateral could impact the fund’s performance.”
Shapiro addresses other key collateral management concerns in this video chat.
Click here to check out FTF’s annual DerivOps North America conference! This conference includes discussions on the current state of collateral management, clearing, counterparty risk, SEFs, security-based swaps, derivatives data, derivatives reconciliations, derivatives trading, FCMs, regulation and other topics related to derivative operations and processing.
Also click here to learn about FTF’s CMD Ops 2017 conference (collateral, margining, derivatives) to get the latest on the overlapping complexities of derivatives operations and collateral management. At this one-day conference, FTF will breakdown the challenge via industry experts, market participants and problem solvers who will delve into the burdens of “derivops” and the wise use of collateral.
CREDITS:
Video Production: Janene Knox and William J. Poznanski, Jr.
Interview conducted by: Eugene Grygo, chief content officer, FTF News
Co-Producers: Sarah Hathaway, vice president, Financial Technologies Forum (FTF) and Eugene Grygo
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