Cutter Benchmarking 2023 Derivatives and Collateral Management - Executive Summary

Derivatives are complex financial instruments used for various purposes such as to generate alpha or hedge risks in portfolios. Increased regulation and a recognition of the risks that are often inherent in derivatives instruments has driven change in the processes used to manage them and support increased collateral management obligations. Asset managers and asset owners have addressed their derivatives processing and collateral management requirements in a number of ways: implementing newly acquired systems; reworking existing systems; developing new controls and business processes; and generally increasing their understanding of these instruments throughout the organization. In this study, we look at how effectively participating firms stand in gaining efficiency in their derivatives and collateral management processes.