Calls for the buy-side to take greater responsibility for their collateral activities have been heard for years in the securities finance industry, including in this publication. The argument was that buy-side firms were leaving money and opportunity on the table by allowing dealers to decide what collateral they received in repo or securities lending, or allowing a dealer to decide what collateral to take for OTC derivatives transactions. This status quo was unlikely to hold, and we are now seeing the outcome of new thinking about business models.
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