We are committed to the right outcome specific for each client.

What is your strategy and solution?

Central Park Solutions will guide you through the options and the most suitable strategy for you. From understanding the best approach to implementation, we are committed to the right outcome specific for each client.

01 OTC Derivatives Clearing

For many organisations outside the larger global investment banks, OTC Derivatives Clearing is a fairly new concept with many unknowns. At Central Park Solutions we try to demystify some of the perceived complexities. Many organisations are not driven by regulatory mandates to have OTC Clearing capabilities. We endeavour to assist organisation understand why they may wish to undertake OTC Clearing and the considerations they should take into account during that decision making process. Some of the key areas include:

CCP and clearing broker selection
Default/credit risk and market liquidity
Legal and compliance
System and operational requirements
Funding and collateral management
Cost of trading – cleared vs non-cleared

02 OTC Derivatives Trade Reporting

Central Park Solutions has worked closely, supporting a number of organisations, industry groups and third party solutions to help meet OTC Derivatives regulatory reporting requirements. This covers such areas as:

Transaction Reporting
Position Reporting
MTM Valuations Reporting
Collateral Valuation Reporting
Data quality reviews
Reportable data reconciliations

We continue to monitor changes in the market place across implementation of new industry standards, along regulatory and trade repository change programs.

Central Park Solutions also assists organisations who were required to implement tactical solutions to meet the initial requirements, and find those approaches may not meet future strategic needs.

03 Collateral Management

Across industry users of OTC and Listed Derivatives, Collateral Management can be viewed in a very different light depending on your type of organisation. A global institutional bank will have completely different challenges and decision points to smaller domestic bank. An investment manager will have different requirements to a corporate firm.

Central Park Solutions look to identify a fit for purpose approach to meet current and future needs, taking into account regulatory requirements and future industry trends. We also ensure that approaches to collateral management encompass both Non-Cleared and Cleared Collateral, along with processes around portfolio reconciliation, dispute management and portfolio compression.

Key services include:

Review of direct and indirect regulations impacts
Operation impacts and implementation requirement
Solution reviews and implementation support across software vendor, third-party services or internal builds
Collateral optimisation and trade lifecycle cost consideration (Cleared and Non-clear)

04 Portfolio Reconciliation & Dispute Management

In Europe and the US the implementation of portfolio reconciliation and dispute management protocols were introduced in the first round of OTC Derivatives Reform along with other Risk Mitigates. For other jurisdictions, such as Australia, the equivalent requirements were only introduced under the recent APRA CPS 226 standards and are scheduled to come into effect on 1 March 2018. Click here to view implementation Timetable.

It should be noted that many of the Australian banks and large buy side firms will be complying with the equivalent requirements through their activity with European and US counterparties already.

Central Park Solutions helps organisations understand the protocols they need in place and ensure they can operationalise these requirements into their day to day business. It’s important that consideration be given to both current and future business requirements.