The biggest barrier to the optimal execution of collateral management is frequently an internal one, says Scott Linden, managing director, collateral management for Wilmington Trust, in a video chat with FTF News.
“I would say the biggest barriers are probably still internal,” says Linden, citing problems that may lurk among systems and staffs in operations, strategy groups or risk management units. “You first need to gain concurrence. You probably need to educate your business partners at the firm that you’re at. Depending on where you’re at, if you’re at a smaller buy-side firm that is getting caught and swept up in the rules … you may have to have lots of conversations to get buy-in. I think that once you’ve gotten buy-in, the challenge is still … the budget.”
But once firms grapple and get past the barriers, there are many system and service options to choose from that will facilitate a firm’s particular collateral management needs, Linden says. “It’s a cliché, but there is no ‘one size fits all’ when it comes to a solution,” he adds.
The FTF CMD Ops 2017 (collateral, margining and derivatives) conference was held in New York City this past October. Linden took part in the “Finding the Best Path to Optimal Collateral Management” panel discussion.
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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