Regulatory reform of the OTC derivatives market is creating many strategic and tactical industry challenges that are driving change at an unprecedented pace and that need to be overcome, including:
- A changing collateral management regulatory landscape and its requisite compliance requirements
- A desire to have a more efficient operations process
- A strategic move from high fixed cost to a flexible variable cost infrastructure
The challenges outlined above are but a few of the current demands put upon firms’ overall resources. These resources are in many cases already stressed or even unavailable for work on strategic objectives due to tactical demands.
DTCC-Euroclear Global Collateral Limited (GlobalCollateral) was formed as a market response to these demands. GlobalCollateral brings together the two foremost industry-owned shared service providers - DTCC and Euroclear - to create a unique industry collateral management platform. This platform provides a solution that the industry demands for both the strategic and tactical issues.