Northern Trust Unveils New Collateral Management Offering

Northern Trust is enhancing its collateral management and liquidity service to meet the anticipated need for greater amounts of eligible collateral and increased demand for liquidity.

“The intersection of these regulations will impact institutional investors in a number of ways, particularly increasing the need for liquidity and, over the longer, term creating a collateral squeeze,” says Fiona Horsewill, head of product and strategy for Europe, Middle East and Africa at Northern Trust.

The enhancements allow clients to view their entire asset inventory and track each asset’s location for assets held in custody both with and outside of Northern Trust, and they can access eligible collateral for initial margin requirements. Clients can also review and evaluate counterparty exposure and monitor potential future liquidity needs.

“By expanding our liquidity access solutions, we can help support our clients’ short-term liquidity needs so that they are not required to liquidate assets unnecessarily in order to meet the variation margin demands,” says Horsewill. “We will continue to work closely with our clients and the wider market to create solutions that will ensure access to eligible collateral through a variety of sources to meet regulatory driven collateral requirements.”