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About Broadridge

Case Study

European Custodial Bank

The bank was acting as the collateral agent on behalf of its lenders’ CSAs. To support this, it required a technology system for CSA collateral management. The client was looking for a solution that would give it control over legal terms, margin call valuation disputes, collateral eligibility, haircuts and concentration schedules.

Broadridge’s client had recognised the emerging trend towards centralising collateral management across business lines. It wanted to achieve the benefits of consolidating its siloed collateral usage for derivatives, securities lending and repo into a single central collateral desk.

The client also wanted to evolve the collateral function from the middle and back office to a full front to back office process. This would see collateral usage taking on an increasing front office focus as traders became more aware of risk control and collateral usage costs in the wake of the financial crisis.