System and method for facilitating collateral management

A collateral management system integrated with financial instrument trading and analytics system components, the collateral management system comprising:

• a) means for receiving terms of an agreement relating to collateral support for a transaction involving two parties and financial instruments, wherein the terms include collateral held having a determinable present value, collateral pledged having a determinable present value, and a threshold exposure value for transferring the collateral support between collateral held and collateral pledged;
• b) an agreement database for storing the terms of the agreement as agreement data;
• c) means for computing an exposure value representing the risk of financial loss associated with the transaction;
• d) means for comparing the computed exposure value with the threshold exposure value;
• and
• e) means for initiating a transfer of collateral based on the comparison of the computed exposure value with the threshold exposure value.

A machine readable media for facilitating collateral management in support of transactions involving financial instruments, comprising:

• a) a data segment for,
• i) storing data relating to agreements governing collateral management relating to the transactions in an agreements database;
• ii) storing data relating to a plurality of collateral and thresholds for initiating transfers of collateral from collateral held to collateral pledged;
• b) a code segment for,
• i) performing an analysis of the transactions to determine credit risk exposure values relating to the transactions;
• ii) comparing whether the credit risk exposure values are greater than the threshold values;
• and
• iii) initiating a transfer of collateral based on the comparison of the determined credit risk exposure values to the threshold values.