Collateral Management Integrated Solutions

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Collateral Management & the Trade Life CycleIHS Markit offers a comprehensive, end-to-end workflow solution for collateral and trade life cycle management, which addresses documentation, valuations, trade processing and margin requirements.

Components of the solutions set include:Documentation

IHS Markit’s Counterparty Manager allows market participants to create and amend Credit Support Annexes via the Variation Margin protocol or direct negotiation through our partner SmartDX. Users can automate the exchange of entity status information for the purposes of compliance with global uncleared margin regulations.

Trade Processing

Post trade affirmation via MarkitSERV, feeds confirmed trade details directly into valuations platforms, to mark positions. MarkitSERV can also feed directly into IHS Markit's Collateral Manager, enabling derivatives trades to be compiled conveniently, without additional data integration.

Valuations

Portfolio Valuations by IHS Markit is a post trade hosted valuations service which covers a a wide range of vanilla and exotic derivatives across multiple asset classes, as well as positions in a range of cash securities. This solution allows firms to outsource their valuations needs and directly feeds into IHS Markit’s Collateral Manager providing end to end Valuations and Collateral Management to firms looking for a hosted solution.

Collateral Management

IHS Markit's Collateral Manager is an end-to-end solution that allows full collateral management to address variation and initial margin protocols as set out the BCBS and IOSCO frameworks.

In 2015, the Basel Committee on Banking Supervision (BCBS) and the International Organization of Securities Commission (IOSCO) revised the framework on margin requirements for non-centrally cleared over-the-counter derivatives, with a proposed implementation date of 1st September 2016.

As many aspects of the framework are now being implemented, financial institutions are reviewing operational processes and workflows to ensure appropriate margin and collateral management practices are in place and address complex requirements across multiple jurisdictions.

Collateral Management

Documentation

Trade Processing

Valuations

Collateral Management & the Trade Life CycleIHS Markit offers a comprehensive, end-to-end workflow solutionfor collateral and trade life cycle management, which addressesdocumentation, valuations, trade processing and margin requirements.

CollateralmanagementDocumentation

Collateral management integrated solutions

Counterparty Manager Secure centralized counterparty documentation & information sharing CSA onboarding

- Entity data- KYC / AML- Tax- Legal- AUM / NAV

Centralized regulatory hub- Protocol for VM CSA creation- Supports uncleared

margin rules (UMR)- Negotiate IM CSA- Classify trading entities

Collateral ManagerMargin calculation

Collateral optimization- Bond pricing data- Reference data- Securities Finance

Dispute resolution

Asset classes covered include:

- Cleared Derivatives- Bilateral Derivatives- Repo- Stock loan- TBAs- Futures & Options

MarkitSERVPost trade processing

Automated capture of trade lifecycle events

Regulatory reporting

Asset classes covered include:

- Credit- Equity- FX- Interest Rate

Portfolio ValuationsIndependent valuations and risk analysis

Front-end including transparency into inputs

Cross asset class coverage including:

- Vanilla derivatives- Exotic derivatives- Structured notes- Cash products- Private Equity- Illiquid Debt

Tradeprocessing Valuations

S T P T R A D E L I F E C Y C L E W O R K F L O W

IHS Markit’s collateral management integrated solutions will help financial institutions rationalize operational costs and work flow efficiencies. Each component is scalable or can be implemented as a fully integrated service.

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Documentation Global and jurisdictional regulations have placed increased scrutiny and requirements for transparency and due diligence on swap dealers who must increase the efficiency of their documentation process including drafting, negotiating, approvals and execution.

IHS Markit’s Counterparty Manager is a secure platform that allows market participants to seamlessly exchange, track and distribute data and entity enterprise documents with their counterparties. The solution supports users through the entire life cycle of the initiation, negotiation, execution and legal papering requirements that are part of entity exchange process.

Users are able to connect to the platform on a unique encrypted permission basis, and have access to robust scraping data extraction tools that ensures quality of the meta-data required in the papering process.

For OTC, non-centrally cleared derivatives, IHS Markit’s Counterparty Manager allows swap dealers and their customers to classify their trading entities, as well as create and/or amend and exchange multiple Variation Margin Credit Support Annexes (CSAs) using a single online, automated tool.

Key features

‒ Self Disclosure Letter

‒ Variation Margin (VM) Protocol

‒ Jurisdictional Modular Protocol

‒ Smart DX bilateral CSA negotiation tool

‒ Perceptive meta data recognition

Benefits

‒ Cost effective

‒ Quick time to market

‒ Easy access to counterparties

‒ Manage KYC obligations

Collateral ManagementIHS Markit’s Collateral Manager is a cloud-based, end-to-end collateral management workflow tool covering every aspect of the collateral management cycle.

By outsourcing collateral management workflow to our secure, cloud based system, counterparty, clearing broker and CCP margin activity is readily available along with real-time reporting on all collateral positions. Every aspect of the collateral management lifecycle is covered in a secure, hosted environment, with no hardware or software deployments.

Trade Processing and ValuationsAs part of the collateral management workflow process, a key hurdle faced by market participants has been achieving consistency in valuations used for P&L generation and margin calculation for collateral exchange.

In addition, financial institutions must also ensure seamless connectivity and workflow across valuations and collateral management systems.

IHS Markit’s Portfolio Valuations is a managed service for Valuations by IHS Markit covering a range of vanilla and exotic derivatives across mulitple asset classes as well as positions in a range of cash securities. Portfolio Valuations together with Collateral Manager by IHS Markit provides end to end Valuations and Collateral Management service to firms seeking an outsourced alternative.

IHS Markit’s Collateral Manager integrates trade

data feeds from client trading systems. Post-trade affirmation solution MarkitSERV, feeds trade details to Collateral Manager, or to valuations departments to mark positions, which in turn feed into Collateral Manager. This allows compilation of derivative trades with no additional integration of data feeds.

MarkitSERV also connects to IHS Markit’s Portfolio Valuations, which in turn can be plugged into Collateral Manager. Together as an integrated solutions set, they provide a seamless trade processing, valuations and collateral management platform, bringing operational efficiency, transparency and accuracy to the industry.

Collateral ManagementIHS Markit’s Collateral Manager is a cloud-based, end-to-end collateral managementworkflow tool covering every aspect of thecollateral management cycle.

By outsourcing collateral management workflow to oursecure, cloud based system, counterparty, clearing brokerand CCP margin activity is readily available along withreal-time reporting on all collateral positions.Every aspect of the collateral management lifecycleis covered in a secure, hosted environment, with nohardware or software deployments.

Key featuresCoverageIncludes all cleared and non-cleared OTC derivatives, repos, stock loan, futures & options, TBAs 

ConnectivityImmediate connectivity to a wide and rapidly growing range of market infrastructure

Customer serviceAccess to a knowledgeable and dedicated customer service team

ConsistencyConnectivity with Portfolio Valuations ensures uniformity between P&L generation and margin calculation

TransparencyIntuitive visual dashboard with instant notification of priorities and how much activity is outstanding

BenefitsFlexibleNo ‘legacy’ code slowing down development and evolution, configurable workflow

Straight through processingIntegration with third party and other IHS Markit solutions offers operational efficiency

CompetitiveCutting edge, cost-effective technology

AgileFast implementation across the organization and deployment of enhancements and upgrades

SecureProvides full data security via cutting edge private Cloud technologies, with regular security updates being deployed

ScalableGrows with your business needs

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About IHS MarkitIHS Markit (Nasdaq: INFO) is a world leader in critical information, analytics and solutions for the major industries and markets that drive economies worldwide. The company delivers next-generation information, analytics and solutions to customers in business, finance and government, improving their operational efficiency and providing deep insights that lead to well-informed, confident decisions. IHS Markit has more than 50,000 key business and government customers, including 85 percent of the Fortune Global 500 and the world’s leading financial institutions. Headquartered in London, IHS Markit is committed to sustainable, profitable growth.