CHICAGO--(BUSINESS WIRE)--Northern Trust announced today it has launched Collateral Balance Reporting, an automated solution that allows custody clients to monitor the amount, location and status of collateral, including counterparty exposures, on a global basis.
Collateral Balance Reporting leverages Northern Trust’s enhanced straight-through processing environment for client collateral on its global operating platform. Instructions for collateral, whether active or passive or pledged by the client or a broker, are electronically conveyed to Northern Trust, processed and reported to clients on a real time basis. Client reports identify the securities used as collateral, total amounts of collateral pledged or received, types of transaction for which the collateral is used, and all counterparties.
“Over the past few years, heightened market volatility and risk have increased demand for transparency into the collateral process, including details on the quality of collateral and counterparty exposure,” said Paul Jezek, Collateral Platform Manager for Northern Trust. “As the use of collateral increases to support sophisticated investment strategies, Northern Trust has leveraged its decades of experience in settlements and reporting to build a flexible and agile system to handle the lifecycle of these complex transactions.”
Collateral Balance Reporting is available to institutional clients on a global basis through Northern Trust’s multi-faceted web portal, Passport®. Features of the enhanced system include:
- Electronic capture of collateral instructions and maintenance of collateral;
- Enhanced collateral tracking with counterparty information for exposure reporting that will tell users what, where, how much and why collateral is being used;
- Supports tracking and reporting for rehypothecated securities; and
- Client reporting on collateral positions on both a real-time and historical basis.
“We recognize our clients’ need for transparency in order to manage their risk,” said Paul d’Ouville, Head of Global Product Management at Northern Trust. “These enhancements are vital to providing our clients with the necessary tools to track exposure to counterparties during uncertain market conditions.”
Northern Trust offers both active and passive collateral management for clients ranging from asset managers to corporations, pension funds and family offices located around the globe. To help clients navigate issues with collateral, Northern Trust has published a paper, "Challenges in Balancing Risk, Accounting and Settlement for Repos," which is available on Northern Trust's web site. The paper explains how repurchase agreements are structured and used and discusses the regulatory and economic environments around repos.
About Northern Trust
Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of investment management, asset and fund administration, banking solutions and fiduciary services for corporations, institutions and affluent individuals worldwide. Northern Trust, a financial holding company based in Chicago, has offices in 18 U.S. states and 16 international locations in North America, Europe, the Middle East and the Asia-Pacific region. As of September 30, 2011, Northern Trust had assets under custody of US$4.2 trillion, and assets under investment management of US$644.2 billion. For more than 120 years, Northern Trust has earned distinction as an industry leader in combining exceptional service and expertise with innovative products and technology. For more information, visit www.northerntrust.com.
The material within and any linked material accessed via this communication is directed to eligible counterparties and professional clients only and should not be distributed to or relied upon by retail investors. For Asia-Pacific markets, it is directed to institutional investors, expert investors and professional investors only and should not be relied upon by retail investors.
- Northern Trust (Guernsey) Limited, Northern Trust Fiduciary Services (Guernsey) Limited, and Northern Trust International Fund Administration Services (Guernsey) Limited are licensed by the Guernsey Financial Services Commission.
- Northern Trust International Fund Administrators (Jersey) Limited and Northern Trust Fiduciary Services (Jersey) Limited are regulated by the Jersey Financial Services Commission.
- Northern Trust International Fund Administration Services (Ireland) Limited, Northern Trust Securities Services (Ireland) Limited and Northern Trust Fiduciary Services (Ireland) Limited are regulated by the Central Bank of Ireland.
- Northern Trust Global Services Limited has a Netherlands Branch which is authorised and regulated in the Netherlands by De Nederlandsche Bank.
- Northern Trust Global Services Limited has a Luxembourg Branch which is authorised and regulated by the Commission de Surveillance du Secteur Financier (CSSF).
- Northern Trust Luxembourg Management Company S.A. is regulated by the Commission de Surveillance du Secteur Financier (CSSF).
- Northern Trust Global Services Limited operates in Abu Dhabi as a Representative Office, Licence number 13/238/2008 which is authorised and regulated by the Central Bank of the United Arab Emirates.
- The Northern Trust Company operates in Canada as The Northern Trust Company, Canada Branch which is an authorized foreign bank branch under the Bank Act (Canada). Trustee related services in Canada are provided by the wholly owned subsidiary The Northern Trust Company, Canada, an authorized trust company under the Trust & Loans Companies Act (Canada). Deposits with The Northern Trust Company and its affiliates and subsidiaries are not insured by the Canada Deposit Insurance Corporation.
- Northern Trust operates in Australia as a foreign authorised deposit-taking institution (foreign ADI) and is regulated by the Australian Prudential Regulation Authority and the Australian Securities & Investments Commission (AFS Licence No: 314970).
- The Northern Trust Company of Hong Kong Limited is a securities company regulated by the Securities and Futures Commission.
- The Northern Trust Company has a Singapore Branch which is a foreign wholesale bank regulated by the Monetary Authority of Singapore.
- The Northern Trust Company has a branch in China regulated by the China Banking Regulatory Commission.
- Northern Trust Global Investments Japan, K.K. is regulated by the Japan Financial Services Agency.
- Northern Trust Global Services Ltd (UK) Sweden Filial is Authorised by the Financial Services Authority and subject to regulation by the Finansinspektionen.
- Northern Trust Global Investments Limited has a Netherlands branch which is authorised by the Financial Services Authority and subject to regulation in The Netherlands by the Autoriteit Financiële Markten.
- Northern Trust Global Investments Limited has a Sweden branch which is authorised by the Financial Services Authority and subject to regulation in Sweden by the Finansinspektionen.