Northern Trust Announces Collateral Management System Upgrade

Northern Trust announced that it has enhanced its collateral management system to provide real-time access and transparent reporting of the daily over-the-counter (OTC) derivative collateral call process.

This enhancement allows clients to log into a dashboard to view the current status of exposures, collateral balances and OTC derivative positions, including valuations. The enhancement is available on a global basis to asset owners, such as pensions, endowments, corporate and institutional investors, and to asset managers, including Investment Operations Outsourcing clients.   

According to the announcement, in addition to the dashboard, the enhancement will allow clients to run reports on a range of OTC and collateral management issues: 

  • Open OTC derivative positions and valuations, 
  • Collateral balances, 
  • Credit Support Agreement details, and  
  • Executive Summary of all counterparty credit risks. 

Through its collateral management service, Northern Trust performs all functions, including securing a daily independent valuation of the over-the-counter derivatives, counterparty exposure calculation, call notification, resolution of disputes on incoming/outgoing collateral calls, and clearing of collateral movements.