We invite you to read Finadium’s article, “New regulatory proposals on counterparty credit exposure point to DLT solutions,” and explore innovative strategies for mitigating intraday counterparty credit exposures. Guido Stroemer, CEO of HQLAᵡ, notes that “HQLAᵡ's core functionality is ideally suited for enabling instantaneous, precise and real-time mitigation of counterparty credit exposures, not only during normal business hours, but conceivably also on a 24/7 basis. Given the recent BCBS and the FSB consultation papers on counterparty credit risk management, we expect the banking industry to complement its attention on managing intraday liquidity as a scarce financial resource with a similar, laser-like focus on mitigating intraday Risk Weighted Assets (RWA) related to intraday counterparty credit exposures.” Article available open access: https://lnkd.in/eJNu-NXF #intradayliquidity #distributedledgertechnology #collateralmanagement #rwa #regulatory #risk #collateral #BaselIII #LiquidityRisk #RiskManagement #hedgefunds #banking
Regulators are focusing on the risks associated with counterparty exposure and collateral management following multiple instances of buy-side leveraged trades going awry. In every case, some of their recommendations could be met with distributed ledger technology (DLT) solutions at a reasonable cost, and with a high degree of accuracy across the industry. Could this be the catalyst for market-wide adoption of DLT in the collateral space? HQLAᵡ More on #finadium: https://lnkd.in/e9HARbEm