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:
- Multi-Jurisdication Reporting - ASIC/EMIR/MAS/CFTC
- UTI/UPI implementation
- Lifecycle Action and Event Type management
- Control framework
- Data quality review and remediation
- Vendor implementation
We continue to monitor changes in the market place across implementation of new industry standards, along regulatory and trade repository change programs.
Recent Engagement Examples include:
- AI-driven trade reporting implementation
- Regulator data quality enquiry remediation
- Internalisation of Derivatives Trading reporting readiness
03 Collateral Optimisation
Across industry users of OTC and Listed Derivatives, Collateral Optimisation 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 ensure that approaches to collateral optimisation encompass all collateral activities, liquidity management and data considerations.
Key services include:
- Understanding existing industry challenges, regulatory impacts and peers trends.
- How to build your collateral optimisation capabilities for the future.
- Moving from a siloed to centralised collateral management approach.
- Liquidity management and tokenisation use cases.
04 Internalisation of Derivatives Capability
As organisations expand their use of Derivatives whether in terms of trading volume or breadth of Derivative products, there often comes an inflection point where there is a greater need to internalise or extend their Derivatives capabilities. Without understanding the implications and requirements to build this extended capability, risks may be introduced or not be well understood.
Central Park Solutions helps organisations understand best practice and practical approaches to meet the near and longer term goals for internal derivatives capabilities. In addition, this support can be carried through to implementation and training support.
