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Collateral Management
Northern Trust’s collateral management outsourced solution helps you manage your counterparty risk across a variety of markets including derivatives, foreign exchange, repo, prime services and other financial products.

 

Supporting Your Need To Manage Through The Changing Derivatives, Regulatory and Counterparty Risk Landscape

At Northern Trust, we understand that the intersection of global derivatives and capital-related regulations are expected to increase the need for liquidity and over the longer term, potentially create a collateral squeeze. We will effectively monitor and manage your liquidity and collateral needs within a transparent framework to optimize your assets while reducing counterparty and settlement risk.

 

Leverage our Collateral Management Solutions

We provide broad services across the collateral lifecycle, helping you with:

Optimizing Performance and Boosting Returns

Take advantage of our Collateral Management solutions to help you achieve regulatory compliance, operational efficiency and access to broader Securities Financing and Liquidity services at Northern Trust.

End-to-End solution

  • Manage collateral in accordance with your legal agreements
  • Calculate exposures,  initiate and respond to collateral calls
  • Move your collateral accordingly, leveraging collateral optimization capabilities
  • Access to Northern Trust Asset Management cash funds for collateral reinvestment 
  • Full suite of margin segregation services

Flexible Reporting

  • Daily exposures, trade positions, collateral balances, accrued interest calculations, asset holdings and valuations, agreement details
  • Extensive data attributes available for client system integration
  • Configurable reports and data distribution models

Underpinned by Global Controls

  • Un-biased position by coupling collateral with independent valuation service
  • Pro-active reconciliation to counterparties, clearing agents and fund administrators
  • Dispute management including reporting and escalation to clients 

Delivering Broad Benefits

  • Automated collateral selection hierarchy process including custom algorithms under collateral optimization offering
  • Protecting your assets by reducing counterparty exposure risk 
  • Enhanced counterparty risk reporting and oversight
  • Specialist independent service tailored to the buy-side

SECURITIES FINANCE LEADERS

Judson Baker

Meet our Collateral Product Manager

Judson Baker is Senior Vice President and Collateral Product Manager at Northern Trust based in Chicago.


 

Contact Us

Want to learn more? Contact us to speak with one of our experts.

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