Solutions

Collateral Management

CollateralManagement

Our comprehensive Collateral+ solution combines pre- and post-trade optimization tools with buy-side focused services to help you manage counterparty exposure, monitor collateral needs and eligibility, and coordinate an efficient approach to margin management. We provide deeper insights to strengthen your collateral management.


Margin management
Our core process includes electronic maintenance of credit support documents, calculation of over-the-counter (OTC) derivatives exposures and foreign exchange (FX) forwards. We value collateral balances, calculation of residual exposure, issuance of collateral calls and responding to collateral demands to or from counterparties. Collateral+ also offers reconciliation of positions and valuation, resolving valuation disputes, processing collateral settlements, sweeping cash collateral into cash reinvestments.


Third-party services
As a custodian, we support you with settlement, segregation and reporting services.


Triparty services
With our triparty service, we support you to effectively manage the collateralization process for multiple transactions. This process allows automated collateral selection, valuation and margin calls. We establish accounts for both trading counterparties and manage the transfers between them in accordance to pre agreed rules set by the two counterparties.


Optimization and analytics
Our algorithmic collateral optimization ensures that available collateral is used in the most efficient manner. We minimize your overall collateral requirements and funding costs by suggesting optimal trade placements through margin optimization. Based on your requirements, our collateral optimization solution can upgrade to source collateral to meet margin needs or downgrade collateral to monetize unutilized, high-quality collateral.

Why State Street

Through end-to-end capabilities that include pre- and post-trade optimization tools with buy-side focused Tri-Party collateral service, Acadia’s Initial Margin Exposure Manager (IMEM) and Margin Manager (MM) service and DTCC’s Margin Transit Utility (MTU), we help you manage counterparty exposure, monitor collateral needs and eligibility, and coordinate an efficient approach to margin management. Our solutions give you deeper insights into your portfolio to help reduce drag, manage cash positions, address changing regulations and strengthen your collateral management.


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