Developments in collateral management services

CPMI Papers  |  No 119  | 
09 September 2014

In a report published today, the Committee on Payments and Market Infrastructures (CPMI) examines developments in the collateral management services industry and the attendant potential settlement-related benefits and risks.

The report, Developments in collateral management services, describes how collateral management services are changing in an effort to address expected increases in demand for collateral. It provides an overview of the variety of approaches being undertaken by many of the service providers to furnish customers with better tools to monitor their securities holdings and increase efficiencies in the deployment of those securities.

While the report identifies a number of benefits resulting from the ongoing innovations, it also highlights that proposed services have led to increased complexity and operational risks.