Conquering the Cost Conundrum
Current changes in the financial industry are proving to be costly for market participants. For example, the push by regulators for more centralised clearing of OTC derivatives means that portfolios will have to be split between cleared and un-cleared derivatives. Margining for OTC markets is also becoming increasingly complex and the management of assets delivered to cover these exposures are another source of cost. Knowledge that the cost of trading could increase further still has prompted many to re-asses their stance. Many are turning to market infrastructures with sophisticated triparty collateral management solutions such as Clearstream’s Global Liquidity Hub for a one-stop- shop solution to meet this multitude of challenges in an efficient and cost-saving manner.