Quick Find:
Collateral Management
 
Objectives

The course is aimed at developing a foundation in the secure and controlled processing of collateral in a financial institution, with particular focus on the operations aspects. This course is equally relevant to the buy-side and sell-side of the business.

This training course explores the essential purpose of collateral, its application in a number of transaction types, and the lifecycle of collateral (including valuation, margin calls, substitution, etc.). Throughout the course, both primary risks and mitigating measures are highlighted.  


Target Audience

This course is suitable for staff that are new to the subject of collateral, and for those that are currently working within a collateral function and who require a broad understanding of the transactions (e.g. repo) that necessitate collateral and the typical lifecycle of collateral. This course is an extension of the ICMA Operations Certificate Programme (OCP) but there are no formal pre-requisites to taking this course.  


Length and Structure of the Course

The course consists of two days of lectures, case studies and group exercises. Each day typically consists of four 90 minute sessions with coffee breaks in the morning and afternoon and lunch break in the middle. There is no exam for this course but candidates will receive a certificate of attendance.  


Course Tutor

Mike Simmons
Mike is an independent training consultant and has been involved with the capital markets and operations throughout his career, focusing originally upon securities settlement and more recently on the broader aspects of operations (e.g. derivatives, trade finance, payments, corporate finance and corporate lending). Mike is the author of two books on Operations “Corporate Actions: A Guide to Securities Event Management” and “Securities Operations: A Guide to Trade & Position Management” both published by Wiley Finance. Mike is also a regular instructor on the ICMA Operations Certificate Programme.  







Course Outline
Session 1 Contents
Introductory Session • Definition
• Purpose of collateral
• Why collateral became popular
Session 2 Contents
Transaction Types Necessitating Collateral #1 • Secured cash borrowing & lending
• Cash borrowing at CSDs & custodians
• Foreign exchange
Session 3 Contents
Transaction Types Necessitating Collateral #2 • Securities lending & borrowing
• Repo
• OTC derivatives
Session 4 Contents
Types of Collateral • Cash
• Bonds
• Equity
Session 5 Contents
Legal Protection • Necessity of legal protection
• Master agreements and credit support annexes
• Specific clauses
• Implications for Operations
Session 6 Contents
The Collateral Lifecycle #1 • Collateral eligibility
• Collateral selection & optimisation
• Calculating market value & collateral value
• Haircuts
Session 7 Contents
The Collateral Lifecycle #2 • Revaluation, margin calls
• Thresholds, minimum transfer amounts
• Agreeing collateral, settlement methods
• Settlement instructions, successful & failed settlement
Session 8 Contents
The Collateral Lifecycle #3 • Updating internal books & records
• Re-use of collateral
• Collateral substitution 
• Impact of corporate actions





ICE EducationDetails of the next seminar

London
TBC

 ICE Education
5th Floor Milton Gate
60 Chiswell Street
London EC1Y 4SA
United Kingdom

Please email education@icmagroup.org to register your interest to attend our next publicly scheduled course.

Based at ICE Education London offices: IntercontinentalExchange® (NYSE: ICE), is a leading operator of regulated global futures exchanges, clearing houses and over-the-counter (OTC) markets.


Costs

The cost is £1,250.00 for ICMA Members and £1,650.00 for non-members.

The following discount scale is offered:
2-4 candidates – 5% discount each*
5+ candidates – 10% discount each*

*Please note that discounts are applied by way of a refund to the organisation when registration has closed and the final number of candidates from the firm has been determined.

Payment can be made by secure online credit card or by invoice. Please note that the BACS invoice method has an additional £50 admin fee.

Note that anyone requiring accommodation to take the course will be required to arrange this on their own; it is a class-based but non-residential course.


For more information

To learn more, please read Mike Simmons article about Collateral Management & how to adopt best market practice in Risk Mitigation.

This course is also available on a group booking basis.

Should you have any queries about this seminar please contact David Senior on +44 20 7213 0329 or at education@icmagroup.org




Helene Starklint Henriksen

Organisation: Danske Bank
Job title: Specialist Settlement Officer

Describe what you do on a day to day basis in your job:
Settlement of cash, repo, Triparty, Collateral Management and custody trades in Euroclear. Euclid Administrator.

Reasons for taking the course:
To complete my ICMA Executive Education Diploma and to brush up on my skills, as well as to hear other participants’ views of the current market situation.

Benefits of taking this course:
I learnt about the future plans for OTCs (CCPs), as well as being present for interesting discussions in the group about the benefits and risks connected to Collateral Management.



Nicola Losito

Organisation: UBI BANCA INTERNATIONAL S.A.
Job title: Project Manager/Business Analyst

Describe what you do on a day to day basis in your job:
My primary function as project manager is to collect development needs of each department, to figure out business requirements and to analyse impacts and costs in order to present project proposals to the Management. Thanks to my previous experience during the last 12 years within departments such as Operations, Accounting, Credits and Head of Securities department, I’ve been able to gain a valuable overview of the entire bank which allows me today to easily understand the various needs and to interpret them effectively.

Reasons for taking the course:
After having passed the OCP course in 2010, I have been informed about the introduction of the ICMA Diploma requiring two additional Level III courses. I finally decided to choose Collateral Management because this topic, being part of the management and mitigation of risks, is becoming extremely important nowadays.

Benefits of taking this course:
The Collateral Management course explores topics which can be directly applied to real-world situations and adopted in day to day situations. My operational background really allowed me to get the most out of the course.







 
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