Elements and Performance Criteria
- Process collateral support documentation
- Source collateral support annexe (CSA) relevant for specified clients
- Interpret and analyse implications of CSA for managing collateral with counterparty
- Identify requirements of CSA and its impact on how collateral is measured and managed
- Execute collateral requirements identified in line with organisational policy
- Monitor collateral activity
- Use net market to market value of trades covered by credit support documents to calculate collateral margining activity
- Initiate margin calls when terms of CSA dictate
- Monitor and update daily market values for non-cash collateral debt, checking that any cuts in valuations are applied in line with agreed framework
- Identify and update derivative credit exposures on long-term and short-term deals on organisational credit management system
- Monitor threshold amounts to determine options to use break clause if necessary
- Negotiate and replace collateral deals when break clause has been invoked
- Process call and return amounts promptly and accurately
- Observe segregation of roles according to organisational requirements and industry codes of practice
- Manage collateral disputes or defaults
- Identify differences in valuations and escalate to correct stream
- Check, value and reconcile portfolios on regular basis to ensure collateral management data is current and valid
- Deal with disputes according to organisational policy and procedures
- Document and escalate unresolved disputes or defaults to appropriate personnel as required
- Investigate and escalate non-settlement or fails of agreed collateral to the appropriate risk stream in line with agreed Service Level Agreements