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Follow on Google News | OpenGamma Introduces Margining Solution for Clearing Members to Replicate CCP Margin CalculationsOpenGamma, today announced a new margining platform for clearing members to support the initial margin calculation requirements of central counterparties (CCPs) on OTC swap transactions.
By: OpenGamma Governments and regulators are pushing for large structural changes to the OTC derivatives market, such as mandating the central clearing of transactions that have historically been settled bilaterally. This results in the new requirement for initial margin (IM) to be posted on all transactions. Combined with the need for both pre- and post-trade risk-measure- “The swaps market is transitioning from one in which overnight batch jobs were the norm to one that requires trades to be cleared in seconds and margin to be posted intraday,” said Kevin McPartland, Head of Market Structure Research at Greenwich Associates. “In order to provide safe and cost-effective access to clients in that marketplace, it is critical that FCMs manage the flow of margin in a timely and accurate way.” The OpenGamma Platform for Margining (http://www.opengamma.com/ Using the OpenGamma Platform, FCMs can run full margin re-calculation of client accounts as large as 10,000 swaps in less than a minute on one commodity CPU, and respond to SEF ping requests using full IM replication in as little as 3.6 milliseconds. In addition, users are able to analyze the margin and collateral impact of proposed trades and conduct ‘what if’ scenario analyses - capabilities that can also be offered as value-added tools to their end clients. Critically, the platform provides access to all supported CCPs’ margin methodologies through a single API, so FCMs can integrate once and get access to full multi-CCP capabilities without the costly effort of supporting custom libraries and APIs for each clearing house and asset class. Thanks to the solution’s light, thin and fast technology profile, it integrates effortlessly into existing technology stacks without the need for wholesale replacement of earlier technology investments. “The new IM/VM requirements have dramatically changed the way clearing members will need to approach risk management,” Added Kirk Wylie, Co-Founder and Executive Chairman of OpenGamma: “The OpenGamma Platform for Margining includes the flexibility of our original market risk platform, empowering clearing members to tackle regulatory changes with effective on-premise solutions. Regulators continue to push the industry to STP trades at ever-increasing speeds to meet the new OTC market structure requirements. That’s why we’ve invested a lot of resources into building a solution that allows our clients to do full intraday re-margining of their portfolios, updating and checking against any associated IM-based limits, and responding to SEF pings in real time.” About OpenGamma OpenGamma (http://www.opengamma.com) was founded in 2009 to develop an open platform for analytics and risk management for the financial services industry. The company’s flagship technology product, the OpenGamma Platform, is designed to allow financial services firms to unify their calculation of analytics across the traditional trading and risk management boundaries. The company is headquartered in London with an office in New York. End
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