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Asia collateral management demand grows
20 February 2014
Regulation is driving demand for collateral management in Europe and the US. But Asia will not escape the extraterritorial fallout, finds Paul Golden, and similar local regulation may soon appear
Even though counterparty trust remains high and regulators have
been slow to impose local rules, Asian market participants are
increasingly recognising the value of collateral management.
The process of implementation of G20 regulatory reform on OTC
derivatives and new capital rules is less progressed across
Asia than the US or Europe and the unsecured financing that
diminished in Europe and the US following the global financial
crisis is still a widely employed market practice.
Yet interest in collateral management has been increasing
across the region. Even by last April more than nine in ten
delegates at Clearstream’s Global Securities
Financing Conference Asia described identifying the right type
of collateral as either a high or very high priority for their
Swen Werner, product head of collateral management Asia
Pacific JPMorgan suggests local market participants
increasingly see the value of collateralising their trades.
"Demand is a function of the level...
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