Accenture Collateral

Management Services
Achieving high performance through
collateral management transformation
2 | Accenture Collateral Management Services
Collateral Management

Figure 1. Convergence of new operating requirements driven by cost drivers,

regulation and next-wave technology capabilities.

Pressure to bolster operating

margins with cost savings through
efficiency

Collateral
Increased regulatory management Availability of next
scrutiny next wave technology
generation
architecture

The collateral management function
performs a range of important and
unique roles within a capital markets
firm. The process of making calls for
collateral (or “margin calls”) is a well-
defined and operationally sophisticated
set of business processes and workflows.
Effective collateral management starts
with design, negotiation and set-up
of new collateral legal agreements
(CSAs), and continues with operations
to collect and return cash and collateral,
recall and substitute collateral, mark
collateral to market, asset-service
collateral and meet the demands to
finance new types of products.
Collateral is a key component of credit
risk mitigation. Coupled with other
techniques such as traditional credit
analysis, capital-reserving strategies,
netting, selective termination and use
of credit derivatives, collateralization
is part of an increasingly sophisticated
toolset available to credit risk managers.
The implementation of global regulations
such as Basel III, the Dodd-Frank Wall
Street Reform & Consumer Protection
Act and EMIR/Mifid II will bring increased
capital and reporting requirements
that squeeze operating margins, while
collateral managers are increasingly
being required to become active
participants in their firm’s profitability
and pricing strategies. Industry initiatives
include offering “consolidated margin
calls” across cleared/uncleared derivatives
products, collateral optimization and
transformation to reduce margin
requirements/improve liquidity control,
sophisticated cross-border capabilities
and more effective use of assets under
custody with the extension of tri-party
services. In order to provide this
functionality, collateral managers
must innovate to improve collateral
management functional, data and
system capabilities.
At Accenture, we believe that collateral
management processing will benefit
from a convergence of new operating
requirements driven by cost drivers,
regulation and next-wave technology
capabilities like service-oriented
architectures and cloud computing
(see Figure 1). These drivers will finally
take down the walls between investment
banking departments, and will force
unprecedented synergies across
operations for cash-settled securities
and OTC derivatives. Services and
information models will converge,
enabling better cost management and
capacity that expands or contracts
along with business demand.

3
Industry Drivers
for Change
The credit crisis has brought two issues
into sharp focus: that of counterparty
credit risk and the importance of
the collateral management function.
These issues present challenges and
opportunities for collateral actors,
especially central counterparties and
banks that offer—or wish to offer—OTC
derivatives clearing. As the complexity
and volume of regulated collateralization
processing increases, there is a strong
argument for overhauling collateral
management processing across
the industry.
Margin requirements
In the United States and Europe, the
Dodd-Frank Act and the European
Markets Infrastructure Regulation
(EMIR) have provisions for central
clearing and margin requirements.
4 | Accenture Collateral Management Services
Further, these regulations and globally
proposed central counterparty clearing
(CCP) models will lead to liquidity
demand of high initial margin, daily
variance margin, primarily in the form
of cash and increased margin require-
ments for bilateral OTC transactions.
Changes to credit and
risk calculations
Recent Basel III draft proposals bring
changes to credit and counterparty risk
calculations. They also call for additional
collateral and margin requirements for
large, complex and illiquid derivatives.
Thus, regulatory focus on expanding
capital requirements will require
banks and buy-side firms to focus
on Collateral Optimization across
Front Office, Treasury and Operations
to maintain liquidity for their
trading business.
Managing across borders
The Undertakings for Collective
Investments in Transferable Securities
(UCITS) IV directive was implemented
in late 2010, making it easier for fund
management firms to operate across
borders. As such, fund managers now
need to manage exposure by applying
credit risk mitigation practices—including
optimized collateral management—to
their cross-border derivatives dealings.
Increased use of OTC derivatives
The size of the OTC derivatives market,
as reported by the International Swaps
and Derivatives Association’s (ISDA) 2011
Margin Survey, indicates that over the
ten-year period from 2000 to 2010 the
amount of collateral for OTC derivatives
transactions has grown at a 30 percent
Case Study
Best-in-Class Collateral Management Assessment
The challenge
Our client, a global investment bank,
wanted to develop a best-in-class
collateral management capability.
Secondary objectives included near-
term foundational improvements for
immature capabilities and the incor-
poration of regulatory imperatives into
the target state.
Our approach
Current state assessment. We
leveraged the Accenture maturity
model, enabling us to identify
immature capabilities.
Visionary and foundational requirements
gathering. By leveraging the current
state assessment to solicit visionary
and foundational requirements across Client benefit
all functional areas, we defined best-
• A clear vision to enable capability
in-class capabilities and highlighted
maturity and evolution in lockstep
foundational changes needed for
with regulatory changes.
immature capabilities.
• Ability to secure funding for capability
Regulatory impact assessment. transformation with supporting
We pinpointed capabilities that will business cases.
be impacted by upcoming regulatory • Enabled top-management dialogue
changes. between business and technology,
Target state definition. We combined allowing IT to drive the design of
visionary requirements and regulatory concrete plans to enable the target
impact assessment to define the state.
target state.
Transformational roadmap. We
defined a series of change initiatives
to evolve capabilities from current
state to desired target state along with
supporting business cases.

compound annual growth rate, while
gross credit exposure has grown at a
14 percent compounded annual rate.
In addition, the survey indicates that
70 percent of OTC derivatives trades
were reported by respondents as
subject to collateral agreements.
There are other indications of the need
to overhaul collateral management
processing. Consider:
• A comparison of the aggregate
returns from a constant sample of
institutions showed growth over the
last 6 months of 20.2 percent.
• The increasing requirement by
buy-side clients to segregate their
collateral with third parties such
as custodians means calculations,
reconciliations and reports need
to account for these separate pools
of assets.

Robust repurchase agreement • Approximately 80 percent of the Emerging industry

(repo) market
The International Capital Market
Association European Repo Council
reported in its June 2011 survey that
repo markets have continued to follow a
steady growth trend, providing much-
needed liquidity to borrowers. The
contracts outstanding on the books
of the 59 institutions that participated
in the latest survey was EUR 6,178
billion, compared to EUR 5,908 billion
in December 2010.
overall OTC trade population of
self-regulation initiatives
the 14 largest dealers is subject to
collateralization. In addition, implementation of industry
standards such as ISDA Collateral Best
• Cash now stands at over 81 percent
Practices, integration of Electronic Margin
of collateral received and 80 percent
Messaging standards, the new Dispute
of collateral delivered.
Resolution Protocol and Standardized
• Hedge funds are the largest Collateral Agreements are additional
collateralized client sector. focus areas in the bilateral OTC
• There is an increasing range of Collateral Management world.
“other collateral” assets deemed
acceptable by market participants,
including corporate bonds, equities
and government agencies, and some
CCPs have recently announced the
acceptance of gold as collateral.

5
Key Challenges in Current
Collateral Management Processes
Figure 2. Overview of current collateral management processes.
Periodic processes Daily process

Set policy for Negotiate and Capture Prepare to Calculate Make Record Deliver exposure Action
business/credit/ approve trade terms of calculate margin margin call margin in reports to reports
regulators and/or master agreement margin books and business/credit/
agreements records regulators
• Maintain/ • Gatherdata • Aggregate • Review initial • Make • Deliver
Maintain receive required positions, margin appropriate reports to
counterparty details of for margin prices, static calculation entries to appropriate
margin negotiated calculation data • Monitor update client areas
agreements • Match compliance accounts
accounts to ensure For example: trades to with • Settlement
• Perform new ongoing • Trade capture agreements agreements
client/account margin • Gather mark • Calculate • Margin call
set up compliance to market available management
• Perform client/ (MTM) position margin • Make margin
account close • Determine calls
out thresholds • Receipt
• Gather of client
up-fronts instructions
• Gather MTM • Review out-
collateral standing calls
• Gather cash • Negotiate
• Collect interest collateral
rates • Dispute
• MTM exposure management
calculation /port recs
• Trade • Close out-
consolidation standing calls

Optimizing collateral management
processing offers businesses significant
opportunities to drive growth and
manage risk (Figure 2). However, there
are also some key challenges.
• Collateral legal agreements are
often not integrated; they are stored
independently of the margin
management system.
• Inaccurate, insufficient and untimely
information is fed down from front-
office systems.
• Stale data can result in inconsistent
price feeds or instrument valuations.
• Manual processes create inefficiencies:
for example, sending out margin
calls by fax or e-mail, and manually
maintaining instrument prices and
receiving counterpart margin calls.
• Margining methodology and haircuts
are not transparent for trades that
are hard to value.
• Incomplete product or asset class
coverage leads to siloed manual
processes.
• Consolidated data from multiple
operations systems are supplied in
batches, not intra-day.
• Limited ability to produce intra-day
collateral valuation (for Front Office,
Regulators).
• Value-added client service channels
are scarce.
• Audit trails are not maintained.
• Collateral reporting lacks detail.
• Multi-person review of results
or proposed actions (“four-eyes”
checks) are often not conducted.
• Few skilled resources in the market-
place results in a talent deficit.
• Firms have limited or no capabilities
for adopting emerging central
counterparty clearing infrastructure
and computing complex margin
calculations.
• The ability to produce simulations of
margin calls/pre-trade initial margin
estimates and cost of margining to
assist the Front Office in pricing of
trades is limited.
• Limited cross-product netting
capabilities.
• Limited use of PFEs for exposure
calculation.
• Limited cross-asset collateral
inventory views.

6 | Accenture Collateral Management Services

Case Study
Collateral Management
Re-Engineering for Prime
Services Businesses
The challenge
Our client is a leading global
investment bank.
The Dodd-Frank Act signifies a market
shift in how derivative products are
cleared and is expected to lead to
near-universal uptake of Central
Counterparty Clearing (CCP) for
Over-the-Counter derivatives (OTC)
traded products.
The bank’s Prime Services (PS) business
is seeking to take advantage of this
operational shift by offering its clients
an enhanced Collateral and Margin
offering for both CCP cleared and
uncleared bilateral products, through
cross-netting, cross-product margining,
collateral transformation services, etc.
The current business processes and
IT infrastructures are ‘silo based’ by
product and region. Investment was
needed to provide clients with the
enhanced collateral and margin
client offering.
Our approach
• Analyzed and documented Prime
Services’ current collateral and
margin processes across all business
streams and products.
• Identified and documented the
business requirements PS needed
to become a Clearing provider and
provide clients with an advanced
collateral and margin client offering.
• Provided project management to the • PS has the operational framework
Global Collateral and Margin Change to accept certain CCP ineligible
Management Team to facilitate the collateral to meet CCP margin
development of the OTC-CCP client requirements, transform the collateral,
offering. This included owning post it to the CCP and charge its
management reporting on project clients accordingly.
status, risks and issues at both a
Business sponsorship and Program
Steering Committee level.
• Coordinated various Collateral and
Margin projects within a wider
Strategic OTC-CCP Program. This
included working with separate
change teams from various functions,
e.g. Treasury, Risk Management, Sales,
Legal, IT, Product Development,
Client Management, etc.
Client benefit
Following the delivery of this project:
• Prime Services can provide clients
with a Consolidated Margin Statement
for all their cleared and uncleared
bilateral positions across products,
CCPs and legal entities.
• PS clients can meet their margin
calls across all products and legal
entities with one single payment/
delivery (subject to legal
documentation and related
legal opinions), reducing the
pressure on funding and their
operational costs.
• PS clients can receive margin relief
and reduced margin calls by benefiting
from cross-product margining and
recognizing risk offsets (subject to
legal documentation and related
legal opinions). This will provide
them with reduced funding cost.
7
Collateral Management Next
Generation Service Architecture
Figure 3. Collateral management next generation service architecture.
Enterprise Portal
services Internal applications
Front office services
Client and
counterparty Front office trading
data,
reference
data, pricing Integration zone
and analytics
Trade event processors
Exception Operations
management
Operations services
Legal and compliance
Management platforms
Compounding operational challenges,
a typical bank has dozens of systems,
hundreds of flows and, often, no
consistent information model. In light
of this, how is it possible to transform
the collateral management function?
The basis of transformation is a next
generation service architecture.
The Accenture capital markets next
generation service architecture (Figure
3) is a set of services underpinned by
a consistent information model, as well
as standardized workflows from front
to back, and across cash-traded and
OTC derivatives products. We offer
management consulting services
to help businesses get started with
this transformation, as well as with
technology services along the way.
The capital markets next generation
architecture features:
8 | Accenture Collateral Management Services
Sales and client onboarding
Front office P&L and market/
counterparty credit risk
Collateral Trades and position keeping
management services:
information services
• Workflow control
• Margin call engine
Finance
• Consistent and federated information
architecture.
• Standardized messaging for processing
trade, operations and other key
information.
• Straight-through processing market
infrastructure that leverages industry
standard protocols.
Within this architecture, Accenture
features next generation collateral
management services. Figure 4 shows
how collateral management fits into
the overall architecture.
Key aspects of the next generation
collateral management services are:
Setup and maintenance
Collateral managers collaborate with
sales, trading, risk, and legal and
compliance to determine agreements
with clients and counterparties. The
Market
Client service and self-service Infrastructure
Interfaces
Execution
services
Clearance,
P&L and risk services
settlement
payments
Regulatory
reporting
services
Enterprise risk
next generation service architecture
uses streamlined workflow and
consistent information models to
capture client/counterparty data
and margin requirement parameters
from contracts.
Outcomes:
• Time to trade is reduced.
• Margin agreement terms are recorded
electronically, facilitating margin
process automation and workflow-
based updates are sent to downstream
users as and when changes take place—
even for complex OTC derivatives.
Margin processing
Collateral requirements and margin
calls become intra-day, fed by
continuous processing of new trades,
settlements, payments and margin
calculations.
Figure 4. Collateral management fits into the capital markets next generation
service architecture.
Trading desks Sales, credit, Client service and Compliance
prime services client onboarding self service services

Margin Agreement Margin Compliance

interface interface interface interface
Business
Client/ exceptions
interface Exceptions
counterparty Rule-driven workflow services
data interface Collateral agreement process Margin call process
Client/counter-
Reference data A&R data
party, reference interface
Margin Calculation Services: Analytics and
interface
• RegT, portfolio, etc. Margin reporting
data, pricing
Official pricing Collateral management data view • Overall requirement calc interface
(market, firm (integrates risk)
MtM) interface
Risk services
Portfolio Collateral Inventory Management Services for collateral
reconciliation Selection Substitution Rehypothecation Settlement Fails (valuation,
Risk data
Returns Netting PFE, risk-based
Enterprise data stores interface
Collateral Management margin)
Trades and Margin call
positions electronic messaging
Feed Integration Services interface interface Market
infrastructure:
Trade event Transaction Trades and position Transaction Clearance, depots, nostros
interface interface CCPs, registries,
interface keeping information settlement,
services payments bilateral,
counterparties,
triparty
Transactions data stores

Outcomes:
• Dispute management for OTC
derivatives margins is streamlined.
• Position valuation and margin call
calculations are standardized in
response to the requirements of
regulators and central counterparties.
Analytics services for sales,
CVA trading, limits management
and compliance
Analytics provide real-time snapshots,
trending and business intelligence for
key stakeholders. For example:
• Trade pricing, including collateral
requirements.
• Collateral and re-hypothecation
optimization.
• Counterparty behavior, including
dispute data, fails and changes to
parameters such as ratings, accounting
for netting sets and enforceability.
• Limits analysis against aggregated
cash margin and credit support
annex agreements.
Feed Integration Services for
collateral management
Collateral management functions
utilize dozens of inbound feeds. In the
next generation architecture, these
feeds are managed by Feed Integration
Services (FIS). FIS comprises interfaces,
methods and run-time environment. It
facilitates the integration and workflow
orchestration of trade, analytics and
finance data for inbound and outbound
streams in a bank’s front-, middle- and
back-office.
Supporting technology
The next generation service
architecture is supported by robust
technical models and capabilities
harvested from Accenture’s deep
technology engagement experience
in capital markets:
Trade and analytics meta-model. This
generic object model maps feed data
into a consistent enterprise business
model for trading, risk quantification,
valuation and risk reporting.
Rules model. Our rules model captures
business rules across trades, analytics,
risk measurement and risk aggregation.
Data orchestration capabilities.
This toolset links reference data, pricing,
trades, transactions and analytic
components in semantic relationships.
Process workflow capabilities. These
tools are used to implement workflows
that are driven by business events.
Data cloud capabilities. This toolset
complements the Feed Integration
Framework as the platform for cloud
computing and forms the foundation
of capacity management.
Feed services. This toolset provides
connector services to data suppliers
and consumers.
9
Accenture Can Help
Collateral management transformational
programs are large, complex and
often span multiple years. Legacy
and vendor systems must be integrated
or consolidated, then linked to the
next generation architecture through
a carefully planned series of projects.
The result is a new level of sophistication
and automation in the collateral
management process. This enables
collateral managers and credit risk
managers to view aggregated exposure
and collateral—globally and in real
time—by entity, product or counterparty.
This view, coupled with new analytics,
can yield insight into new business
uses of collateral and more competitive
products to finance trading.
Accenture’s robust capabilities in
management consulting and technology
services enable us to assist businesses
with this transformation process.

Case Study
Collateral Management Securities Valuation Estimation
The challenge
Our client, a major settlement intermediate
company, wanted to improve its
collateral management infrastructure.
The Securities Valuation Estimation (SVE)
project consisted of an enhancement
of the overall SVE process compliant
with the local Banking, Finance and
Insurance Commission’s recommendations.
Goals included:
Our approach
Based on the high-level business
requirements and functional design,
Accenture clustered the design and
build work into four work packages:
screens, manage parameters, valuate
collaterals and non-core processes.
Our approach included application
outsourcing, including offshore
development:
Client benefit
• Low-cost development.
• Reduced interaction with offshore
resources by applying the offshore
operating model.
• Application of CMMI Level 3
Procedures.

• Improve collateral valuation. • Re-use of India delivery centre

• Improve control environment. resources.
• Re-use of offshore operating
• Improve maintainability.
model.
• Control cost.
• Jump-start of offshore development.
• Providing a maintenance option at
low cost.

10 | Accenture Collateral Management Services

11
Our Services
Accenture helps clients optimize the
collateral management process by
leveraging our services in management
consulting, technology consulting and
business process outsourcing (BPO).
Figure 5 shows Accenture’s roles in
all phases of collateral management
capabilities transformation.
We have several thousand consulting
resources worldwide dedicated to
serving our capital markets industry
clients. We have deep capital markets
expertise in the world’s major financial
centers. Our capital markets delivery
centers in Madrid and India are among
a network of more than 50 delivery
centers distributed around the world.
Management Consulting
Our capital markets Management
Consulting group initiates collateral
management transformation programs,
providing:
12 | Accenture Collateral Management Services
• Maturity and capability assessments
using our Collateral Management
Framework (Figure 6) and Scales
of Mastery.
• Operating model and organizational
structure analysis.
• Business case definition.
• Program management.
• Business process analysis.
• Business requirements documentation
and buy vs. build assessments.
• OTC to CCP Collateral change
program services.
• Collateral Optimization services.
• Portfolio Reconciliation services.
Accenture Management Consulting
also provides or shares program
management duties with the
client and with Accenture technology
consultants.
Technology Consulting
Accenture Technology Consulting
brings together our capabilities
and services—systems integration,
technology consulting, alliances,
application outsourcing and infrastructure
outsourcing—to provide clients with
fully integrated package or custom
technology solutions for collateral
management. Our technology
consultants in capital markets bring
deep domain skills and product
knowledge to client projects.
Business Process Outsourcing
High-performance businesses are
always seeking new ways to outpace
competitors. BPO provides just such an
opportunity. We can help businesses
hold down overall operating costs
through strategic use of BPO services.
Accenture provides a number of BPO
services for our capital markets clients
globally, including asset servicing,
research, and analytics.
Figure 5. Accenture’s capabilities in collateral management transformation.

Phase 1 Phase 2
Assessment/business diagnostic Solution design Implementation Deployment

Target operating model Detailed business

Collateral management process Business
and technical
service
Business operating requirements
Technologies assessment introduction
Cost model GAP Business Build

Maintenance
anatomy analysis case
Organization review Architecture design IT service
Test introduction
Risk assessment Quick wins

Project management
Tasks • Review of the collateral management process • Establish target operating model blueprint • Package selection
and interactions • Assess gaps through deep diagnostics • Define detailed business requirements
• Assess current technology architecture and • Prioritise transformational initiatives • Create detailed functional and technical designs
challenges • Investigate alternative sourcing models (pure • Develop, test and deploy
• Define the organization structure internal, co-sourcing, application maintenance, • Manage releases and waves of change
• Evaluate the risk policy through the collateral application outsourcing) • Train key business and IT resources
management framework • Set and validate business case • Define service level agreement
• Review the operating, transaction and • Identify quick wins for immediate use • Support maintenance request
maintenance costs

Deliverables • Process and organization architecture • High level target operating model • Detailed functional design
• Technology architecture • Architecture blueprint • Detailed technical requirements
• Risk assessment matrix • Business case description • Test and launch scenario
• Cost analysis • Quick wins ready to launch • Migration plan
• Service introduction plan
• Training and communication plan
• Support materials
• Organization design

Figure 6. The collateral management function must be assessed in light of the overall framework to identify current gaps
and risks.

Input Product desks Risk Output

data management data
Securities financing (repo, OTC derivatives Treasury (cash management)
Instrument lending/borrowing) Market risks Reporting
Static data Internal
reporting
Corporate Client
actions reporting
Valuation Exposures management
Liquidity
Market Exposures Trade recognition Exposure matching Exposure netting risks Matching
Market data valuation Matching with
counterparty
Collateral
valuation Collateral management Matching with
Legal custodian
Contracts setup Risks parameters Collateral allocation
Legal Credit risks
agreements Matching with
third party
Margin call Cash management Dispute process
Client/
Feeds to FO/
counterparty
Reconciliation Inventory Interest process CVA Trading
Positions and management
balances Operational CSA data/
risks changes
Client data Operations
(settlement Netting/
instructions, aggregate
Settlement Accounting
risk rating) exposures

Connectivity
Market access (phone, Settlement/payment CCP connectivity Third party report interface Collateral electronic
email, Web) links messaging

13
Alliances
As capital markets firms upgrade their
technology platforms to reduce credit,
operational and liquidity risk, collateral
management product vendors are
aligning to meet the demand. These
vendors are presenting offerings in
the market that can be leveraged as
components that integrate with client
legacy systems and with new services
in the next generation architecture.
Accenture has alliances with a number
of industry-leading vendors who offer
collateral management capabilities.
Income and the full range of OTC
derivatives including CCP margin
calculations for many central clearers.
Accenture is a global implementation
partner for Calypso and has more than
five years of extensive experience with
the Calypso Trading and Risk Management
Platform. We also have a large pool
of resources around the world with
deep Calypso expertise, and have
contributed to the development of
Calypso Fast-Track.
Accenture also has a successful track
record of working with other market-
leading software vendors in the
collateral management space, including
Sungard, Algorithmics, Lombard Risk
and Omgeo, who, while not formal
alliance partners of Accenture, have
been supportive in the delivery of joint
client engagements over the years.

Murex
Murex provides a suite of collateral
management and margining solutions
for a variety of financial institutions:
MX Collateral Manager comprises
functional offerings for capital markets
& treasury (OTC derivatives, repos and
securities lending), enterprise-wide
trading and banking book collateral
management, central clearing (clearers,
clearing member brokers and broker
clients), energy markets and leveraged
margin trading. Accenture teams
around the globe have worked on
successful Murex projects for nearly
15 years and have experience with
all generations of Murex solutions.
Accenture is a global preferred partner
of Murex and operates a joint training
program with Murex in Murex’s central
office in Paris.

Calypso
Calypso provides global application
software that delivers an integrated
suite of trading applications to the
capital markets industry. Calypso’s
comprehensive Collateral Management,
with its powerful collateral optimization
capability, is fully integrated into the
platform supporting Equities, Fixed

14 | Accenture Collateral Management Services

Case Study
Enterprise Collateral Management
Consolidation and OTC
Collateral Optimization
The challenge The project. Accenture worked with
the client to develop a series of tools
Our client, a top 10 US bank, was
and solutions to optimize collateral,
anticipating 300 percent growth in
including Enterprise Collateral
five years. As part of a global enterprise
Monitoring Solution, OTC Derivative
risk and Basel II program, Accenture
Contract Tracking Tool, and integrated
was requested to complete an assessment
solutions within lending and capital
of the bank’s ability to manage, value
markets risk infrastructure.
and monitor collateral for the following
lines of business:
Client benefit
• Capital markets: OTC derivatives and
• Provided a consolidated framework
repos
to track $5.5 billion in marketable
• Lending: Wealth, commercial and security collateral and aggregate
commercial real estate collateral across desks by counter-
part.
Each line of business managed and
• Created efficiency gains through
maintained their own tools, processes
consolidation of operations groups.
and methodology for collateral
Application architecture supporting
management and monitoring. As
the collateral monitoring and
a result, each had a different culture
margining processes generate cost
in managing collateral and perspective
savings of over of $2MM per year.
on business value.
• Examined and re-wrote every ISDA
agreement across the enterprise,
Our approach
reducing capital requirements
As-is assessment. This included by over 50 percent and reducing
evaluation of the existing controls, potential exposure to exotic product
assessment of the activities and collateral.
associated full-time equivalent (FTE)
• Identified over $100MM of over-
headcount supporting the collateral
pledged collateral upon consolidation
management process, assessment of
of portfolio.
current technology tools supporting
the process, and review of calculation • Generated $6MM in interest income
methodology and tools for collateral through improved valuation and
valuation. maintenance across the portfolio.
To be assessment. We developed a
future state operating model, shared
service organization model, common
enterprise processes, procedures,
valuations and application architecture.

15
Contact us
Rajesh Sadhwani
Senior Manager,
Accenture Capital Markets
30 Fenchurch Street, London, EC3M
3BD
+44 20 7844 9887
rajesh.sadhwani@accenture.com
Courtney Adante
Senior Manager,
Accenture Capital Markets
161 N. Clark, Chicago, IL 60601
+1 917 593 4189
courtney.d.adante@accenture.com
Copyright © 2011 Accenture
All rights reserved.
Accenture, its logo, and
High Performance Delivered
are trademarks of Accenture.
Tracey McAllister
Senior Manager,
Accenture Capital Markets
5221 N. O’Connor Blvd, Suite 1400,
Irving, TX 75039
+1 469 665 6232
tracey.mcallister@accenture.com
Thomas Syrett
Senior Executive,
Accenture Capital Markets
118, Avenue de France, 75636 Paris
Cedex 13
+33 1 56527120
thomas.syrett@accenture.com
About Accenture
Accenture is a global management
consulting, technology services and
outsourcing company, with approximately
236,000 people serving clients in
more than 120 countries. Combining
unparalleled experience, comprehensive
capabilities across all industries and
business functions, and extensive
research on the world’s most successful
companies, Accenture collaborates
with clients to help them become
high-performance businesses and
governments. The company generated
net revenues of US$25.5 billion for the
fiscal year ended Aug. 31, 2011. Its
home page is www.accenture.com.