Course description
The Collateral Management online 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.
Suitability - Who should attend?
This course is intended to provide a solid foundation for all individuals wanting to gain understanding of collateral management either because they are pursuing employment in collateral management departments or wanting to expand their knowledge while already working with collateral management.
Outcome / Qualification etc.
The objective of the Collateral Management course is to ensure participants with limited exposure to collateral management will be able to:
- Describe collateral & the purpose it serves
- Identify the various transaction types requiring collateral
- Describe the causes of exposure for financial institutions
- Identify the different types of collateral & their characteristics
- 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
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: Repo
Repo: An Introduction
- The Repo Market Place
- Trade Execution
- Rate Format
- Interest Calculation
- Terms
- Trade Tenure
Repo: Eligible Collateral
- Single and Multiple Collateral
- General and Speicla Collateral
- Margin
Repo: Confirmations and settlement
- Trade confirmation
- Settlement Method
- Settlement Failure
- Updating books and records
Repo; Valuation and Exposure
- Exposure Calculation
- Making and receiving Margin Calls
- Ownership of securities collateral
- Holding securities collateral
Repo; Collateral Ownership - return and income events
- Reuse of securities collateral
- SFT Regulation
- Return of Equivalent Assets
- Collateral Substitutions
- Income Events
The Global Master Repurchaser agreement: Overview
- The Repo Trade Lifestyle
Trasaction Types Necessitating Collateral: OTC Derivatives
Introduction to OTC Derivatives
- Initial Derivatives Concepts
- Structural Aspects of OTC Derivatives
- Legal Documentation - Ask risk mitigation component
OTC Products and Processing
- Interest Rate Swap (IRS)
OTC Products and Processing
- Credit Default Swaps (CDS)
Collateral Management for OTC Derivatives
- Collateral Concepts for OTC Derivatives
- Collateral Lifecycle: An Overview
- Credit Support Annex
The OTC Derivative collateral Lifecycle
- Introduction
- Throughout Lifetime of Trade
- Derivative Collateral Calculation
Central Clearning and impact of collateral
- Central Clearning overview
- Capital Requirements: An Overview
- Central Clearning Primary Concepts
Central Clearing and Operational Impact
- Risk Management
- Netting oppurtunities
Course delivery details
Delegates who sign up to online courses will have access for 6 months to enable them to take advantage of the additional online resources, discussion boards and other functions of our new digital learning platform.
Online courses start at the beginning of each month – please note that payment must be received BEFORE access to these courses are provided.
Expenses
Online course fees
- ICMA Members: EUR 1,300 (VAT not applicable)
- Non Members: EUR 1,900 (VAT not 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...