Post-2008 regulatory changes have made derivatives less effective as these products consume an increasing amount of capital.
Working with Clearing Houses, Banks, Clearing Members, Buyside Firms and software vendors for over 10 years, OpenGamma has implemented
solutions for all derivatives users to allow them to reduce capital inefficiencies and preserve liquidity.
Benefits
Price MVA pre-trade.
Reduce lifetime margin requirements pre- and post-trade.
Increase the transparency of margin methodologies.
Results
20%
reduction in margin requirements.
10 years
experience working with exchanges and clearing houses.
Hundreds
of users leveraging OpenGamma's simulation tools.
Bank XVA desks.
Pre- and post-trade lifetime margin optimisation.
Challenge
Higher interest rates and increases in margin requirements over time have pushed banks to price the lifetime cost of financing margin in client trades.
At the same time, it is hard for XVA desks to identify optimisation opportunities for house books across products, clearing houses and entities.
Solution
OpenGamma allows banks to compute MVA pre-trade based on lifetime margin requirements, and provides optimisation recommendations to remove margin inefficiencies post-trade.
"Because margin calculations are critical to many front-, middle-, and back-office roles in the life of a cleared transaction, we look for products and services from entities like OpenGamma, which can provide CME tools to our mutual clients."
Sunil Cutinho
President
Asset Managers.
Increase efficiency pre- and post-trade.
Challenge
It is easy for Portfolio Managers to make trading decisions that result in inefficient use of capital, across bilateral and cleared products at different clearing houses.
Solution
OpenGamma allows firms to improve capital efficiency with automated solutions to determine best execution pre-trade, and remove inefficiencies post-trade.
CCPs.
Increase transparency into existing and
new margin methodologies.
Challenge
As clearing houses roll out new VaR-based methodologies, the impact on margin requirements for clearing members and clients can be material depending on their portfolios.
Assessing and explaining the impact of margin methodology changes can be challenging as end-users require high levels of transparency on the drivers of margin.
Solution
OpenGamma has worked with a number of Clearing Houses to provide implementations of new margin methodologies and member tools to increase end-user visibility into margin requirements.
