Happy to share a worthwhile read. So many firms are focused on #collateral #optimization . Step-1 is visibility to your sources and uses of funds. Step-2, is real time connectivity to your venues. These allow optimization to be truly efficient. Without both, it is like being in a boat without a paddle. There will be no, "row, row, row your boat gently down the stream". #fintechinnovation
Helen Bartholomew discusses how the high rate environment and increasing CCP requirements are driving the need for firms to optimise the composition of #collateral posted to CCPs, to look at the opportunity cost of posting cash and execute moves in the most efficient manner. The latter often presenting logistical challenges that native connectivity to CCPs and Custodians, such as that provided by Baton, allows firms to overcome. As Tucker Dona explains it allows us to “provide inputs to help firms make the decision of the optimal security to post out to the CCPs and a simple, consistent way to message the instructions.” via Risk.net #collateralmanagement #fintechinnovation