Collateral Management


OTC Derivatives, Repos and Securities Lending and Borrowing are now recognised as very sensitive areas inside many Securities Operations departments, whether on the Buy or Sell sides.


As the demise of Lehman Brothers showed, besides a number of unpublicised hiccups, Collateral Management within these activities is a critical function in mitigating counterparty risk and in ensuring exposures are covered by the proper  taking/giving of collateral.


This course looks at Collateral Management in OTC Derivatives in particular as well as Repos and Securities Lending and Borrowing. Risk identification, Control, Documentation, types of collateral, gross and net exposure and other practical aspects are covered as well as the conceptual framework and practical problems eg the treatment of corporate actions on a borrowed/lent position.


A basic knowledge of and work experience in the Securities Industry is assumed as well as an awareness of Securities Lending or Repos. Specific knowledge of Securities Lending and Repos is not assumed.




        What is Collateral & the purpose it serves

        The various transaction types requiring Collateral

        What causes exposure for Financial Institutions

        The different types of Collateral & their characteristics

        Reasons for Legal Protection & Associated Documentation

        The importance of proper agreement and record keeping

        The Collateral Lifecycle

        Components in Collateral Call Calculation

        Procedures for making & receiving Collateral Calls

        Procedures for handling Collateral Substitution & Income Payments

        Market-wide collateral management terminology

        Primary risks and mitigating controls throughout.




  • Those new to Collateral Management
  • Existing Collateral Management Personnel who require a complete view as to what is involved.
  • Securities & Derivatives Operations, Back Office, and Custodian Managers and staff
  • Commercial and Investment Bankers involved in Securities Lending, Repos and OTC Derivatives.
  • Fund Managers and Private Bankers involved in or considering Repos and Securities Lending and OTC Derivatives
  • Dealers and Brokers
  • Accountants, external Auditors, Lawyers and Compliance executives
  • IT Executives involved in operating, selling or designing Collateral Management systems.
  • Risk Managers and Compliance Executives

Todays Date:

Duration 2 days
LondonFurther dates available on request.
Fee 980 + VAT


Investment Education PLC
45 Old Hall Road, Manchester M7 4JF, United Kingdom
Tel:+44 (0)161 832 3800
Registered in England Number 2129160
VAT Registered Number GB 480 2112 85

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