Case Study
The Collateral Optimization Challenge
Collateral Optimization 3 case studies CASE STUDIES Analyzing data. Empowering the future.1 The collateral optimization challenge The requirement for financial institutions to pledge collateral has increased significantly as financial derivatives markets have moved toward more central clearing. As higher collateral requirements impact financial institutions, eligible assets will be in shorter supply. Extra timing complexities when fulfilling margin calls have been introduced as a result of new regulations. This makes it important to move to periodic intraday at a minimum, or real-time valuation of collateral. As a result, the ability to optimize existing collateral has quickly become a highly valued and sought-after service. Collateral optimization does not only help banks