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Our Evolution of Collateral

Event

AT TONIC WE WERE PROUD TO BE THE LEAD SPONSOR AT OUR EVOLUTION OF COLLATERAL EVENT, HOSTED AT LONDON’S ICONIC GHERKIN BUILDING, ON 6TH FEB 2020.

THE EVENT WAS HELD ALONGSIDE OUR CO-SPONSORS ACADIA, BANK OF NEW YORK MELLON, CASSINI AND CLOUDMARGIN, ORGANISED BY THE CAPABLE HANDS AT OTC SPACE.

THE FOCUS OF THE EVENT WAS ON WHAT THE FUTURE OF COLLATERAL WILL LOOK LIKE AS WE APPROACH AND COMPLETE THE FINAL PHASES OF UMR, INTO 2022 AND BEYOND.

SPECIFICALLY THE KEY QUESTION OUR INDUSTRY LEADERS WERE ASKED TO ANSWER WAS ‘HOW CAN FIRMS MINIMISE THEIR TOTAL COST OF COLLATERAL IN COMING YEARS?

INTRO

A rare bright, sunny day, in the middle of London’s notoriously grey winter, was a good sign for our Evolution of Collateral event.

Showing stunning views of London, the iconic Gherkin has aged incredibly well over the years, still owning one of the UK’s most futuristic building designs. It certainly felt like the right venue to talk about the evolution of collateral in coming years.

It was awesome to see so many buy-side and sell-side firms attend, showing just how much evolution is going on in collateral right now, as well as the clear appetite in the market to learn about and discuss the changes ahead.

Chris Watts, Tonic Co-Founder -

‘Such was the level of demand for the event that we actually could have filled up twoGherkins!

Something we never thought we’d say for a collateral event…’

  

WHO WERE THE PANELLISTS?

We were lucky enough to have a fantastic group of industry speakers across our two panels, all of whom offered plenty of strong insight about the collateral changes ahead.

Our panellists included industry leaders from both sell-side and buy-side, as well as representatives from several market-leading service providers.

See a short bio of our speakers below.

 

WHAT WE COVERED?

After an entertaining look back at collateral over the past 20 years with Bank of New York Mellon’s Mark Higgins, both panel sessions quickly focused on how firms can minimise their total cost of collateral in coming years, via relevant techniques, solutions and transformation.

A key theme throughout our panels was the need for firms to leverage upcoming collateral-impact regulations and industry changes, such as UMR, SFTR, CSDR and IBOR transition, to transform and future-proof collateral infrastructure for the longer-term.

 

WHAT FUTURE COLLATERAL TRENDS WERE DISCUSSED?

Plenty of different topics and trends were covered on our panels, including a wide range of ideas for firms to minimise their future total cost of collateral.

See below for some more details on the content covered within our panels.

1. THE EVOLUTION OF COLLATERAL FUNDING & OPTIMISATION

A more FrontOffice-focused panel, here our industry experts outlined the key ways firms could reduce their collateral funding costs in coming years.

Key growth areas that were covered in detail included:

- Trading strategy changes, such as the transition from uncleared to cleared trading

- The importance of margin forecasting, pre-trade optimisation and collateral liquidity planning

- Collateral usage trends, including transformation and sourcing techniques

- Laying the foundations for collateral optimisation

- The growth of XVA

2.THE EVOLUTION OF COLLATERAL OPERATIONS

A more Operations-focused panel, our industry leaders covered the key techniques firms could use to reduce their collateral operational costs in coming years.

Key topics included:

- The operational impact of Collateral-focused regulation

- Move towards central industry services and portals

- The next process targets for automation

- Industry-level data standardisation

- The role of technology to reduce costs, includingCloud and micro services

WANT TO LEARN MORE? GET OUR FREE EVENT BOOKLET

Our Evolution of Collateral event booklet contains a series of thought leadership pieces, covering some of the key trends and changes that we expect to see across collateral in coming years.

For anyone working in and around collateral, there’s a lot of helpful content, much of it discussed on the day within ourEvolution of Collateral event.

Get in touch and we’ll send you a copy.