Course description
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.
Upcoming start dates
Suitability - 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.
Outcome / Qualification etc.
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.
Training Course Content
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
Course delivery details
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.
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.
Expenses
Livestreamed course fees
- Members: EUR 2,100 (VAT not applicable)
- Non-members: EUR 2,700 (VAT not applicable
Classroom course fees*
- ICMA Members: EUR 2,400 + VAT (if applicable)
- Non Members: EUR 2,900 + VAT (if applicable)
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International Capital Market Association
For close to 50 years, ICMA’s educational offering has played a major part in its mission to raise standards in the international capital market. Our courses are designed and delivered by industry professionals for industry professionals. The offering comprises a...