Collateral Management involves storing goods with an independent third party, separated from the depositor’s influence. The collateral stored at places like public warehouses, is overseen by ACE Global Depository, which coordinates with warehouse operators to ensure control and secure release processes that comply with the financier’s terms. ACE Global Depository acts as the financier’s on-site representative, upholding control and overseeing releases as legally allowed, binding the third-party warehouse to the agreed mechanism. For effective Collateral Management, the third party’s role is crucial as the initial custodian of the goods.