New derivatives trading rules will require faster and more secure collateral management processes for the buyside, but custodians’ solutions are not yet ready or affordable, according to fund managers. At least one large investment house is being forced to service clients’ collateral needs in-house.

Supurna VedBrat, co-head of the market structure and electronic trading team within BlackRock's trading and liquidity strategies group, said: "Collateral management arrangements are currently being worked on [by custodians], but they are not available today to us from either a European context or US."