Next Level in Treasury & Collateral Management

Due to the current high interest rate environment and the associated high costs of cash collateral - as well as stricter requirements from regulators and counterparties - institutions are increasingly turning to securities as collateral. This adds complexity to collateral management, as factors such as procurement, settlement, haircut calculations, and eligibility checks must be taken into account.

As part of Funds Transfer Pricing (FTP), many financial institutions face the challenge of accurately pricing collateral costs internally and allocating them in a way that reflects their origin - that is, assigning them to the corresponding trading transactions. An efficient FTP framework is characterized by a high level of granularity in capturing collateral and underlying transactions, the integration of real-time market data, and a transparent distribution of costs.

In addition to optimizations within in-house collateral systems, external settlement platforms also offer a wide range of services and account models that, when used strategically and configured correctly, can deliver significant efficiency gains. These include solutions such as CmaX AutoAssign, GC Pooling Reuse, and T2S Auto-Coll.

Furthermore, with the launch of ECMS in June 2025 and the partially mandatory participation in ECONS II starting in March 2025, many Bundesbank counterparties are now facing the question of how to best design their account setup and collateral processes for Collateral Pool 3.