Investment Operations

Collateral Management Advanced

Categories Derivatives, Operations, Risk

Course Instructor

Course Level

Intermediate

Certification

Certificate

Delivery

Via Zoom

Hours (EST)

9:00 am - 1:00 pm​

Description

*This course can also be offered upon request and can be customized to fit your team’s needs.

Date: February 27-28

The financial marketplace has seen rapid growth in the use of collateral, which for some time was associated with repo and securities lending transactions but is now additionally of major importance in reducing exposure in other transactions particularly derivatives. The degree of complication within operations departments has consequently multiplied greatly. Successful processing of collateral within an organization requires knowledgeable staff that understand the component parts that lead to safe and secure processing, and awareness of the pitfalls that can result in unacceptable exposures. The Collateral Management Advanced virtual course is designed to provide a fundamental grounding in the secure and controlled processing of collateral, with a focus on the operations aspects.

The objectives of the course are to provide participants with:

  1. Awareness of the essential purpose of collateral.
  2. Appreciation of numerous collateral-related transaction types.
  3. Understanding of the main collateral operational flow.
  4. Knowledge of how to derive collateral values & what impacts such values.
  5. Appreciation of the primary content of legal agreements.
  6. Awareness of the need to operate within the parameters of legal agreements.
  7. Carry out meaningful dialogue on key collateral topics.
  8. Appreciation of the risks in processing collateral & the controls to mitigate.

Who should attend

  1. Existing collateral management personal who would benefit from understanding the “big-picture.”
  2. Existing staff with limited exposure to collateral who require greater understanding of topic.
  3. Team Leaders/managers who wish to increase their awareness of the risks involved in collateral processing.
  4. Legal/Compliance staff who seeks a greater understanding of the operational aspects of collateral processing.

Pre-requisite: The attendee has completed the Collateral Management Fundamentals course or has a basic understanding of securities and payment processing.

Agenda

Day 1

  1. Collateral Management Fundamentals
    1. Margin, Collateral and Counterparty Risk Management
    2. Sources and Uses of Collateral in Capital Markets
    3. Collateral Lifecycles and Liquidity
  2. Margin, Collateral and Master Agreements
    1. ISDA Agreements and the Credit Support Annex
    2. Master Repurchase Agreement and Global Repurchase Agreements
    3. Securities Lending Agreements
    4. Tri-Party Securities Finance Agreements
    5. Collateral Segregation Custodial Agreements
    6. Acadia Agreement Manager and Agreements Digitization
  3. Managing Collateral for Exchange Trading and Central Counterparty Clearing
    1. Role of the Futures Commission Merchant (FCM)
    2. Impacts of Market Volatility on CCP Margin and Margin Calls
    3. Managing Collateral in Clearstream and Euroclear
    4. LSEG Swap Agent for Uncleared Margin Management
  4. Collateral Eligibility, Substitution, Concentration Limits, Rehypothecation and Reuse
  5. Transaction Reporting Market and Regulatory Requirements

Day 2

  1. OTC Derivatives and the Uncleared Margin Rules
    1. Review and Updates to the UMRs
    2. AANA – Average Aggregate Notional Amount
    3. Margin Models and the ISDA SIMM
  2. The CVAs and Capital
  3. Basel IV Impacts on Risk Weighted Assets for Banks and Collateral Management
  4. Daily Operations Workflows
    1. Cross-product and Agreement Netting
    2. Managing Collateral at the Enterprise Level
  5. Collateral Trading and Transformation
  6. Collateral Optimization from Basic to Advanced
  7. Trends and the Future of Collateral Management

Summary & Questions

In-House Training

Custom Training can help you achieve your corporate training goals while staying on budget and focusing the content on the needs of your group. Email your questions regarding corporate training to training@investmentoperations.net.

2024 Training Calendar

Training Catalogue

Course Instructor

Course Level

Intermediate

Certification

Certificate

Delivery

Via Zoom

Hours (EST)

9:00 am - 1:00 pm​

Description

*This course can also be offered upon request and can be customized to fit your team’s needs.

Date: February 27-28

The financial marketplace has seen rapid growth in the use of collateral, which for some time was associated with repo and securities lending transactions but is now additionally of major importance in reducing exposure in other transactions particularly derivatives. The degree of complication within operations departments has consequently multiplied greatly. Successful processing of collateral within an organization requires knowledgeable staff that understand the component parts that lead to safe and secure processing, and awareness of the pitfalls that can result in unacceptable exposures. The Collateral Management Advanced virtual course is designed to provide a fundamental grounding in the secure and controlled processing of collateral, with a focus on the operations aspects.

The objectives of the course are to provide participants with:

  1. Awareness of the essential purpose of collateral.
  2. Appreciation of numerous collateral-related transaction types.
  3. Understanding of the main collateral operational flow.
  4. Knowledge of how to derive collateral values & what impacts such values.
  5. Appreciation of the primary content of legal agreements.
  6. Awareness of the need to operate within the parameters of legal agreements.
  7. Carry out meaningful dialogue on key collateral topics.
  8. Appreciation of the risks in processing collateral & the controls to mitigate.

Who should attend

  1. Existing collateral management personal who would benefit from understanding the “big-picture.”
  2. Existing staff with limited exposure to collateral who require greater understanding of topic.
  3. Team Leaders/managers who wish to increase their awareness of the risks involved in collateral processing.
  4. Legal/Compliance staff who seeks a greater understanding of the operational aspects of collateral processing.

Pre-requisite: The attendee has completed the Collateral Management Fundamentals course or has a basic understanding of securities and payment processing.

Agenda

Day 1

  1. Collateral Management Fundamentals
    1. Margin, Collateral and Counterparty Risk Management
    2. Sources and Uses of Collateral in Capital Markets
    3. Collateral Lifecycles and Liquidity
  2. Margin, Collateral and Master Agreements
    1. ISDA Agreements and the Credit Support Annex
    2. Master Repurchase Agreement and Global Repurchase Agreements
    3. Securities Lending Agreements
    4. Tri-Party Securities Finance Agreements
    5. Collateral Segregation Custodial Agreements
    6. Acadia Agreement Manager and Agreements Digitization
  3. Managing Collateral for Exchange Trading and Central Counterparty Clearing
    1. Role of the Futures Commission Merchant (FCM)
    2. Impacts of Market Volatility on CCP Margin and Margin Calls
    3. Managing Collateral in Clearstream and Euroclear
    4. LSEG Swap Agent for Uncleared Margin Management
  4. Collateral Eligibility, Substitution, Concentration Limits, Rehypothecation and Reuse
  5. Transaction Reporting Market and Regulatory Requirements

Day 2

  1. OTC Derivatives and the Uncleared Margin Rules
    1. Review and Updates to the UMRs
    2. AANA – Average Aggregate Notional Amount
    3. Margin Models and the ISDA SIMM
  2. The CVAs and Capital
  3. Basel IV Impacts on Risk Weighted Assets for Banks and Collateral Management
  4. Daily Operations Workflows
    1. Cross-product and Agreement Netting
    2. Managing Collateral at the Enterprise Level
  5. Collateral Trading and Transformation
  6. Collateral Optimization from Basic to Advanced
  7. Trends and the Future of Collateral Management

Summary & Questions

In-House Training

Custom Training can help you achieve your corporate training goals while staying on budget and focusing the content on the needs of your group. Email your questions regarding corporate training to training@investmentoperations.net.

2024 Training Calendar

Training Catalogue

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