The derivatives market is undergoing disruption due to regulatory changes like the Dodd-Frank Act, European Market Infrastructure Regulation, and Basel III, which are limiting available collateral. This highlights the importance of enhancing collateral management practices to boost operational efficiency, reduce counterparty credit risk, and control trading and collateralization costs. How asset managers adapt their collateral management will impact their ability to achieve investment performance.

SGI offers comprehensive and operationally efficient collateral management services to mitigate risk, improve front office decision-making, and minimize portfolio performance impact. Our goal is to shield clients from the heavy investments required for complex collateral requirements, allowing them to focus on generating investment returns.

Risk Control

• Custom technology ensures straight through processing and connectivity with multiple counterparties via SGI Infomediary®, reducing operational risk
• Manage counterparty credit risk inherent in derivatives trading by handling exposures to counterparties
• Robust reporting offers key metrics, including counterparty exposure and collateral transactions

Enhance Front Office Decision Making

• Improve visibility into collateral usage across counterparties
• Access real-time views of settlement status, inventory, and collateral positions
• Benefit from SGI collateral management business expertise

Minimize Impact on Portfolio Performance

• Select optimal collateral based on client-defined hierarchies and counterparty exposures
• Identify and pledge "cheapest to deliver" collateral based on client-defined parameters
• Ensure received collateral complies with eligibility criteria
• Reduce over-collateralization with counterparties

SGI Collateral Management Program

The SGI Collateral Management program covers the entire collateral lifecycle, supporting complex derivatives trading strategies. It seamlessly links with SGI fund accounting and custody for additional efficiencies and risk management.

SGI's Collateral Management program is supported by a custom technology platform, incorporating industry best practices and providing real-time data reporting to enhance your operating model.

SGI serves multiple participants in the collateral lifecycle, including CCPs, FCMs, and asset managers, leveraging expertise gained from diverse clients.

Clients also benefit from SGI's superior global client service model, which integrates operational expertise, local relationship management, and market intelligence into client-specific relationship plans.