State Street Collateral Management Services
State Street’s comprehensive collateral management solution spans across a broad range of products and legal agreements including the International Swaps and Derivatives Association (ISDA) master forward and master repo agreements. State Street Collateral Management supports multiple eligible asset classes as collateral including cash, treasuries, agency pools, corporate bonds and sovereign debt. The collateral services offering can include a daily reconciliation of open OTC contracts and collateral positions with client counterparties. |
Features
The collateral management service offering includes
the capability to load clients’ cleared derivatives into State Street’s
derivatives servicing platform and calculate the variation margin for
verification with the futures commission merchant (FCM) statement.
Additionally, the firm loads FCM statements directly into the collateral
application and processes clients’ IM requirements to the clearing broker.
The service offers two
forms of margin financing. First, clients can enter into a reverse repo with
State Street Bank and Trust, receiving cash financing in exchange for
securities that may not be acceptable at central counterparties (CCPs). Second,
subject to due diligence and internal approvals, State Street may also provide
a line of credit under which the client may borrow funds against the pledge of
eligible assets segregated in the borrower’s custody account at State Street.
The service also supports the reinvestment of cash
collateral in a client selected vehicle. It provides complete transparency via
real-time reporting through the
firm’s online portal MyStateStreet.com.
Transaction lifecycle support
To address the
full life cycle of a derivatives trade, State Street has developed an
end-to-end derivatives solution, DerivOne. The platform is a modular,
plug-and-play offering including electronic execution, clearing, middle- and
back-office servicing, collateral management, valuation, and risk and
analytics.
Onboarding
State Street’s onboarding team works with the client at an early stage
to define a timeline. It has standard project plans and documentation in place,
which can be customised to the client’s needs.