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Course List
Introduction to the Securities Industry
Introduction to the Securities Industry
Introduction to U.S. Securities Processing
Securities Lending and Borrowing : An Operations Perspective
Foundations of Investment Management and Buyside Operations
Dealing with Change in the Financial Markets
Collateral Management: An Operations Perspective
International Issues
International Securities Operations
International Portfolio Accounting
Foreign Currency: Markets, Clearance, Settlement & Accounting
Foreign Exchange: Lifecycle of a Trade
Corporate Actions
U.S. Domestic Corporate Actions
Global Corporate Actions
Capital Markets
Capital Markets Overview
Capital Market Economics - Investigating the Linkages Between the Real Economy and the Financial Markets
Portfolio Management
Portfolio Management
Securities Analysis
Managing Risk
Risk in a Global Market - Management and Operational Challenges Looking Forward
Financial Management
Financial Accounting and Financial Mathematics
Financial Statement Analysis
Fixed Income Securities
Bond Math: Mathematics of the Fixed Income Market
Structured Securities: MBS, ABS, CDOs
Introduction to Fixed Income Products
Accounting for Fixed Income Securities and Derivatives
Mortgage-Backed Securities
Collateralized Debt Obligations and Credit Default Swaps (CDOs and CDS)
Fixed Income Analytics
Interest Rate Swaps and Credit Default Swaps
Fixed Income Securities Trade Processing and Operations
Accounting, Regulatory & Management
Stock Brokerage Accounting & Securities Regulations
Introduction to Private Equity Markets
Trading After the Volcker Rule
Dodd-Frank for Non-US Derivatives Users
Complying with the MiFID II/MAR Rules
Introduction to Derivative Products
Derivatives: Markets, Operations, Accounting & Control
Derivative Products: Risk Management and Valuation
Option Valuation and Trading
Equity Derivatives: Futures and Swaps
Interest Rate Futures and Swaps
Introduction to Options: Products, Trading & Processing
Swaps Processing and Operations
Commodity Futures: Energy, Metals and Agricultural
Equity Options: Strategies, Accounting and Operations
Mutual Funds
Introduction to Mutual Funds
Mutual Fund Operations

Course Description
Collateral Management: An Operations Perspective
Available Dates:
November 28, 2018, New York
Course Code: 722
Duration: 1 day
Level: Intermediate
Fee: $795.00
Instructor: Charlotte Scott
CPE Credits: 6
Prerequisite: Understanding of OTC Derivatives and Securities Lending is recommended (but not required).

For both Derivatives and Securities Lending business units, Collateral Management is the cornerstone of Counterparty Credit Risk Management. Recent market events and trends highlight the importance of the effective use of collateral as a credit risk management tool. This one-day course provides a detailed look at the Middle Office and Operations functions involved in Collateral Management.

The use of collateral in both Derivatives and Securities Lending transactions will be described.  Critical terminology and documentation of collateral agreements such as CSA's  will be explored.  Participants will gain perspective on its place in the international financial markets today, as well as regulatory considerations, both for the U.S. markets and abroad. 

The role of institutions, investment managers, banks, broker/dealers, custodians, prime brokers and industry organizations such as clearing houses and centralized securities depositories will be examined.

The program will also provide insight into the "Lessons Learned" from the financial crisis, and trends in Collateral Management such as collateral optimization and transformation.  

Topics for discussion include:

Collateral Management Overview

  • Purpose of collateral and its requirements in Derivatives and Securities Lending transactions
  • Who are the parties involved in managing collateral?
  • Relevancy for the Dealers, Institutions, Hedge Funds, Custodians and Prime Brokers

Collateral Eligibility

  • What types of collateral are used and collateral profiles


  • What agreements are used for managing collateral?
  • Credit support documents
  • Best practices and standards 
  • Enforceability of agreements 
  • Transfer of Title
  • Rehypothecation

Collateral Terminology

  • Collateral requirements
  • Independent amounts (initial margin)
  • Variation margin
  • Haircuts (valuation percentage)
  • Threshold amounts
  • Minimum transfer amounts (MTA's)
  • Rounding
  • Interest on collateral
  • Tri-Party Agreements

Collateral Workflow: A Day in the Life of the Collateral Management Department

  • Position Tracking and Timing
  • Mark to Market of open positions subject to collateral agreements
  • Daily monitoring of collateral positions
  • Margin calculations
  • Margin call notice
  • Removing excess collateral and adding collateral
  • How collateral movements are settled and where
  • Reconciliation procedures
  • Non delivery
  • Default
  • Escalation processes

Dispute Resolution

  • Why disputes arise
  • How to avoid disputes
  • ISDA Dispute Resolution Protocol

Collateral Management - Issues and Trends