Basel II and Trends in Collateral Management

Securities Clearance & Collateral Management

Government Institutional Agency Securities Clearance

Consistently ranked #1 for U.S. government securities clearance, we meet the entire range of needs demonstrated by investors trading government securities. We also set the standard for the industry with solutions that give you direct control over clearance activities with the Federal Reserve.

Whether you choose our dial-on-demand or remote clearance option, you can connect easily and cost-efficiently to the Federal Reserve Bank's government securities clearance system, including all other markets in which you participate, using our proprietary FedEdge^® system via a dedicated lease line.

DTCC Securities Clearance

Our proactive approach to securities clearance aims to achieve outstanding settlement rates while minimizing trade failures, making us the clear choice for your Depository Trust and Clearing Corporation (DTCC) clearing agent in the United States.

Understanding your need for a reliable U.S. clearing agent, we have worked with our DTCC clearing clients to accomplish settlement rates of 95% and above. Our staff vigilantly monitors your DTCC clearing activities, utilizing interactive client communications and intra-day settlement and cash reporting, thereby limiting failed trades.

Global Securities Clearance

As a leading provider of global securities clearance services, we have the experience, resources and advanced technology to meet the evolving needs of broker-dealers worldwide. We specialize in country-specific trading practices and settlement cycles to expedite the movement of funds and securities in markets around the world.

Through our extensive sub custodian network, regional operations centers and memberships with multiple depositories, we clear and settle trades in 101 markets around the world. From trade entry to end-of-day financing, we support broker-dealers with transactions that vary in size, asset mix and complexity.

Collateral Management

As a market leader in global collateral management with over $1.5 trillion in daily tri-party balances worldwide, we offer clients outstanding potential to generate additional value from their global collateral inventory.

Positioned as an independent third-party collateral manager between buyer and seller to ensure proper collateralization, we facilitate the tri-party process so that securities sellers and repo buyers can optimize investment performance and improve operational efficiency while simultaneously minimizing investment in back-office infrastructure and technology.

Sophisticated Technology

With 20 years in the business, we have the market expertise and technological resources to provide comprehensive global collateral management through RepoEdge^®, our proprietary collateral management system. Designed to efficiently handle all asset types denominated in any currency and targeted toward a global customer base, RepoEdge can process a wide array of transaction types, including tri-party repurchase agreements (both equity and fixed income), portfolio swaps, collateralized loans, swap collateralization deals and more. This flexibility allows clients to maximize the use of their global inventory through a secure and reliable collateralization process.

Safety, Control and Diversification

As custodian, we safekeep collateral in segregated accounts and mark-to-market daily to ensure that prescribed collateral margins are maintained. Working closely with both principal counterparties to every tri-party transaction, we automatically assess the eligibility of proposed collateral, provide multiple margins by security and apply concentration limits. By controlling all movements of collateral, we ensure that collateralization is maintained in accordance with pre-agreed eligibility criteria. With such a high degree of assurance and control, investors can use global collateral management transactions as a secure mechanism for diversifying and managing risk, as well as a vehicle for improving the risk-adjusted return on investments.