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di_dyson1
Posts: 9
Joined: Fri Jan 20, 2017 4:14 pm

A ‘Smart’ Approach to Blockchain for Collateral Management

Sun Feb 12, 2017 6:58 pm

A blockchain solution for OTC derivatives margin calls could automate collateral management and help banks better manage liquidity risk, but collateral managers need to understand the technology to create that killer app.

Starting in 2016, financial institutions faced regulations that increased their margin requirements for uncleared derivatives. This sounds complex, but the bottom line is that the regulation creates an ongoing need for consolidated margin call data (which varies across brokers) to better manage how much cash reserve is needed to support their business (collateral).
With the DTCC estimating margin call activity could increase by 1,000%You can read the full article under this link.
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