Most collateral arrangements are set up to permit a number of different forms of Eligible Collateral.
Frequently firms do not fully optimise this facility and deliver the cheapest available “Eligible Collateral”
D2LT has assisted firms to create a process to identify the inventory of available assets and cross refer to meta data relating to “Eligible collateral”. This has necessitated aligning the repo, stock loan, XVA, and Legal documentation teams then defining roles and responsibilities.
This has led to significant cost savings through collateral optimisation.