Collateral management

Roles that need it

• Collateral Management Analyst
• Treasury Operations Analyst
• Securities Lending & Repo Analyst
• Liquidity Risk Analyst
• Treasury Analyst

Skills it belongs to

• Collateral and margining
• Settlement and fails management

Related concepts

• Margin callA margin call is a demand by one party, or by a central counterparty, for additional collateral when exposure rises or collateral value falls below the agreed level. The other party must deliver eligible assets within the agreed time, usually the same or next business day; disputes are reconciled and escalated.
• HaircutA haircut is the percentage deducted from the market value of an asset given as collateral, to protect the collateral taker against a fall in its value and costs of selling it. Haircuts rise with price volatility, maturity, credit risk and lower liquidity; a 5% haircut means 100 of bonds secures 95 of cash.
• Tri-party collateralTri-party collateral management is a service in which a third-party agent, usually an international central securities depository (ICSD) or a custodian bank, selects, values, substitutes and margins collateral between two parties under agreed eligibility rules. It is widely used for repo and securities lending and lowers the operational work for both sides.
• CSA (Credit support annex)A credit support annex (CSA) is the part of International Swaps and Derivatives Association (ISDA) documentation that governs collateral for derivatives between two parties: eligible assets, haircuts, thresholds, minimum transfer amounts, valuation and timing of calls. Regulatory CSAs set the terms needed to meet EU margin rules for uncleared derivatives.
• Initial margin (IM)Initial margin (IM) is collateral collected to cover the potential future loss on a portfolio if a counterparty defaults, over the time needed to close out or replace the positions. Central counterparties collect it from clearing members; for uncleared derivatives, covered firms exchange it two-way and keep it segregated.

Sources

• ECB glossary (C) (external site) accessed 31 Oct 2026
• Directive 2002/47/EC (Financial Collateral Directive), EUR-Lex (external site) accessed 31 Oct 2026

Updated 31 Oct 2026.