Regulatory reform of the OTC derivatives market is creating many strategic and tactical industry challenges that are driving change at an unprecedented pace and that need to be overcome, including:
- A changing collateral management regulatory landscape and its requisite compliance requirements
- A desire to have a more efficient operations process
- A strategic move from high fixed cost to a flexible variable cost infrastructure
The challenges outlined above are but a few of the current demands put upon firms’ overall resources. These resources are in many cases already stressed or even unavailable for work on strategic objectives due to tactical demands.
DTCC-Euroclear Global Collateral Limited (GlobalCollateral) was formed as a market response to these demands. GlobalCollateral brings together the two foremost industry-owned shared service providers - DTCC and Euroclear - to create a unique industry collateral management platform. This platform provides a solution that the industry demands for both the strategic and tactical issues.
What are the Implementation Requirements?
Ensure that you have completed the following prerequisites in order for the MTU to track your collateral and settlement activity correctly:
- Complete the MTU onboarding process in its entirety including Message subscriptions & Connectivity set-up.
- Be a member of AcadiaSoft Messaging Platform (AMP) and match margin calls on this platform. This step is required as the MTU only processes margin calls in "pledge accepted” status via AcadiaSoft
- Be a subscriber to DTCC’s Omgeo ALERT® (Omgeo ALERT) and have Standing Settlement Instructions (SSIs) correctly set up in Omgeo ALERT for collateral SSIs.
- Complete the mapping of AcadiaSoft agreements to the Standing Settlement Instructions in Omgeo ALERT via the MTU’s Client Identifier Cross Reference (CIX) utility.
Messaging and Reporting Essentials
This section contains nessaging information for both MTU's Standard Margin Call and Triparty Messaging Services.
Standard Margin Call Messaging Workflows...
Diagrams that explain the messaging workflows for the different types of Margin Calls handled by MTU's Margin Call Messaging Service.
MT558 Status Definitions...
Status definitions used by the MTU in the MT558 status update message and GUI interface