Since the Global Financial Crisis in 2008, OTC Derivatives have been subject to momentous changes in their regulation, affecting all firms that indulge in these financial products. However, for many people working within the financial services industry OTC Derivatives remain a complex mystery and a real challenge to understand.

Derivatives are nowadays a global phenomenon; many types of derivative product have been introduced to mitigate risks of investors and other institutions such as banks. For those that are not involved in such products on a day-by-day basis, understanding of the purpose of each product type is not easy to ascertain, thereby making the understanding of associated operational actions ( trade processing and collateral management) challenging to ; For each product, its purpose and possible outcomes must be well understood by operations and other personnel within financial institutions to provide top quality servicing of clients and to avoid processing ;Therefore, it is essential that those financial specialists involved in derivative processing and associated collateral management, understand the overall picture to identify risk situations as early as possible in the transaction life cycle.