Collateral Management

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The recent regulatory developments (EMIR and Dodd-Frank) orient financial markets toward greater standardization in derivative contracts by strengthening the role of central counterparties and the use of collateral and initial margins. As a consequence, there will be a progressive reduction of OTC derivatives exchanged in bilateral contracts in the coming years, which should increase the involvement of clearing houses.

These ongoing evolutions are compelling banks to adopt suitable instruments for managing back and middle office operations. Furthermore, new needs for system integration between back/middle office and front office/risk management are emerging, for instance in order to include the costs of collateral in pricing models.

riskart® has evolved to anticipate these developments by adopting two toolsets, riskart® Collateral Management (rCM) and riskart® Smart Tools (rST)