The recent credit crisis and ensuing larger economic crisis has highlighted the need for properly managing counterparty exposure. Asset managers’ operations departments are involved in this process as they provide counterparty exposure reporting to senior management and provide information on the status of trades with counterparties. Asset managers are seeking to mitigate counterparty risk via various methods. The Roundtable will respond to the specific questions on the agenda below. The Roundtable participants will first discuss the process of counterparty exposure management from the operations perspective and then, in the second discussion session, cover approaches to counterparty risk management and mitigation.

8:30 am – 9:00 am        Registration

9:00 am – 10:15 am      First Discussion Topic: Counterparty Exposure from Operations Perspective

• Counterparty exposure report frequency? Manual or automated?
• What do the reports cover: some or all asset classes / selected or all counterparties?
• Are the counterparty exposure reports done in house or by third party?

10:15 am – 10:30 am    Refreshment Break

10:30 am – 11:45 am    Second Discussion Topic: Counterparty Risk Management and Mitigation

• Central counterparty plans for MBS and CDS
• Documentation: Re-examining contractual agreements such as ISDA master agreements including CSAs / master securities forward transaction agreement / master repurchase agreements
• Diversification of counterparty base
• Proper collateralization
• Accurate and timely valuations 
• Reconciliations

Registration cost is $75 for members and $145 for non-members. Register online today!

For more information regarding this Roundtable, please contact Diane Trupia of the AMF staff at 212-313-1170 or dtrupia@sifma.org.