Navigating the future collateral roadmap

Policymakers around the world have enacted new rules and legislation, such as the Dodd-Frank Act in the United States, European Market Infrastructure Regulation and Basel III, to increase market stability and resiliency, enhance transparency and reduce risk in markets. A wide range of industry initiatives are also being designed, impacting the management, mobilisation and transformation of collateral. Often viewed as both a solution to and a trigger of massive financial losses that occurred as a result of the financial crisis of 2008, navigating how collateral is effectively managed by the industry is a topic of great interest under a new regulatory and evolving market environment.