Collateral Management
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The Collateral Management course is designed to provide a an solid understanding in the secure and controlled processing of collateral, with a focus on the operations aspects. Based on an element-by-element walk through of various stages of trade and collateral management processing the participants gains knowledge of and the ability to process trades such as Repo and Derivates transactions while managing the required collateral.
Learning Outcomes
By completing this course you will be able to:
- Describe collateral & the purpose it serves
- Identify the various transaction types requiring collateral
- Identify the different types of collateral & their characteristics
- Understand the main collateral operational flow
- Learn how to derive collateral values and what impacts such values
- Be able to look at the risks in processing collateral and the controls to mitigate
- Appreciate the numerous collateral-related transaction types
- Describe the causes of exposure for financial institutions
- Describe the reasons for legal protection & associated documentation
- Identify the components in collateral call calculation
- Understand the rationale for making & receiving collateral calls
- Describe the handling of collateral substitution & income payments
- Identify the primary risks and mitigating controls throughout.
Who should attend?
The course is suitable for collateral management personnel who would benefit from understanding the ‘big-picture’, those who have had limited exposure to collateral but who require a greater understanding of the relationships between their work and collateral and those who have recently been transferred to the collateral management department.
ICMA is a member of the CPD® Certification Service, an FCA-approved qualifications provider and approved by the Securities & Futures Commission of Hong Kong as provider of Continuous Professional Training (CPT).
ICMA recommends that 20 learning hours can be associated with this course, based on attended/undertaken hours of study required to successfully complete the learning outcomes.
A Certificate of Attendance will be awarded to those who meet the minimum attendance requirements for this course.
Please note that your course certificate of attendance or completion should be sufficient to satisfy any professional development requirements – if you require further evidence, please contact us at education@icmagroup.org.
The course content is divided into several topic areas, which are then broken down into multiple subtopics:
- Fundamental Collateral Concepts
Definition and purpose of collateral
Why the increased focus on collateral?
Overview of the collateral life-cycle
- Types of Collateral
Cash
Bonds
Equity
Collateral impact on regulatory capital: overview
- Transaction Types Necessitating Collateral
Securities lending and borrowing
Repo
Secured cash borrowing and lending
OTC derivatives
Cash borrowing at CSDs and custodians
FX
Tri-party collateral services
- Legal Protection
Necessity of legal protection
Master agreements
Definitions
Credit support annexes
ECB valuation haircuts
Confirmations
- Static Data
Concepts of static data
Concepts of STP
Static data and STP in collateral management
- The Collateral Life-cycle
Pre-trading
Trading
Throughout lifetime of trade
Trade reconciliation
Marking-to-market
Collateral call calculation
Making and receiving collateral calls
Collateral substitution
Income and corporate actions
Trade termination
- The Collateral Management Function
Overview of responsibilities
Centralised collateral function
Cost centre vs. profit centre - Current Initiatives
Clearing of OTC derivatives
The regulators’ perspective
Regulatory changes: overview
Central clearing and collateral management
Livestreamed Course
ICMA courses are delivered via video conferencing accessed on our digital learning platform, using the most effective pedagogical approaches and incorporating interactive functions like virtual breakout rooms.
The Collateral Management livestreamed sessions are delivered in four 3.5 hour sessions over the course of two weeks. You will be given access to the course materials a week before the live sessions, and will have access to those for a total of three months from the first live session. During these three months you will have the option to keep working through the course materials at your own pace.
Livestreamed course fees
Members: EUR 2,100 (VAT not applicable)
Non-members: EUR 2,700 (VAT not applicable)
Classroom Course
Our classroom courses are delivered in-person at a confirmed location.
The Collateral Management classroom sessions will be delivered in London over 2 full days of training. Tea, coffee and light refreshments will be provided during the course but please note these courses are not catered. If you have any dietary requirements please let us know when you complete the registration form.
You will be given access to our learning management system and the course materials before the live sessions, and will have access to those for a total of three months. During these three months you will have the option to keep working through the course materials at your own pace. Please note to ensure you book and take the exam within these six months.
Location Address
110 Cannon Street
London
EC4N 6EU
Classroom course fees*
ICMA Members: EUR 2,400 + VAT (if applicable)
Non Members: EUR 2,900 + VAT (if applicable)
*Our prices do not include travel/accommodation. Please do not book any logistics until you receive email confirmation that the course will go ahead. This will be provided 4 weeks in advance of the start date.
For security reasons, delegates who have not registered in advance will not be admitted to the live sessions.
Please note:
- All payments must be made in Euro.
Contact
Should you have any queries, please contact education@icmagroup.org.
