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IBOR could help avert a collateral squeeze 

September 2, 2014
COO Connect

Buy-side firms have been urged to embrace the Investment Book of Record (IBOR), a single source of portfolio calculations across asset classes, if they are to avoid a potential collateral squeeze once the mandatory clearing of over-the-counter (OTC) derivatives comes into effect under the European Market Infrastructure Regulation (EMIR).

A survey of 79 investment firms by SimCorp in February 2014 found 95% to be warm to the idea of IBOR yet 58% confirmed they had no plans to introduce an IBOR initiative this year. Many point out that IBOR can assist managers in pulling together multiple data feeds from disparate sources and can facilitate more accurate and timely reconciliations of positions.

“IBOR can assist fund managers in many areas, but significantly it can help them with the posting of collateral. IBOR produces up to date position level data of collateral and provides a clear line of sight over the collateral pledged. It prevents managers from receiving misinformation or potentially out-of-date information. 

Read more: COO Connect

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