White Paper

Implications of Collateral Settlement Fails: An Industry Perspective on Bilateral OTC Derivatives

March 28, 2016

New rules for bilateral clearing of OTC derivatives, scheduled to take effect later this year, could exacerbate the problems that cause settlement fails. Executives at DTCC-Euroclear Global Collateral , in fact, estimate that the average annual cost for remedying these failures will rise by 407% and 377% for buy-side firms and sell-side firms, respectively, by 2020.