Northern Trust Provides Real-Time Access to Collateral Management Reporting for OTC Derivatives

CHICAGO--()--Northern Trust announced today 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.

"We understand the concerns our clients have as it relates to counterparty risk and are offering transparency into our systems to provide instant access to critical information," said Judson Baker, Product Manager for Derivatives and Collateral Management at Northern Trust. "With our dashboard, it's as if a client is looking over the shoulder of the collateral manager as we calculate exposures, communicate with the counterparty, and agree to collateral movements."

The enhancements are 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. In addition to the dashboard, enhancements 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
  • Executive Summary of all counterparty credit risks

Northern Trust provides an active collateral management service for an array of derivatives market participants ranging from asset managers to corporations, pension funds and family offices located around the globe. Through this 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.

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, 2010, Northern Trust had assets under custody of US$3.9 trillion, and assets under investment management of US$657.2 billion. For 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.

Northern Trust Corporation, Head Office: 50 South La Salle Street, Chicago, Illinois 60603 U.S.A., incorporated with limited liability in the U.S.

The Northern Trust Company, London Branch (reg. no. BR001960), Northern Trust Global Investments Limited (reg. no. 03929218) and Northern Trust Global Services Limited (reg. no. 04795756) are authorised and regulated by the Financial Services Authority.

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 International Fund Administrators (Jersey) Limited and Northern Trust Fiduciary Services (Jersey) Limited are regulated by the Jersey Financial Services Commission.
  • 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 Administration Services (Ireland) Limited and Northern Trust Fiduciary Services(Ireland) Limited are regulated by the Financial Regulator.
  • 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 authorised 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 authorised 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.
  • The Northern Trust Company 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 and 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.

Contacts

Northern Trust Corporation
EMEA Contact:
Camilla Greene, +44 (0) 207 982 2176
Camilla_Greene@ntrs.com
or
North America & APAC Contact:
John O’Connell, +1 312 444 2388
John_O’Connell@ntrs.com
http://www.northerntrust.com

Release Summary

Northern Trust announces product enhancement for OTC derivatives exposure.

Sharing

Contacts

Northern Trust Corporation
EMEA Contact:
Camilla Greene, +44 (0) 207 982 2176
Camilla_Greene@ntrs.com
or
North America & APAC Contact:
John O’Connell, +1 312 444 2388
John_O’Connell@ntrs.com
http://www.northerntrust.com