Margin Analytics Software for Asset Managers

Post-2008 regulation has radically changed derivatives markets. Trading practices have changed, costs are rising, and every firm will soon be posting hundreds of millions of dollars of investor assets to third parties.

As a result, asset managers are now faced with a number of challenges, which include:

• Increased cost of using derivatives.
• More operational complexity.
• More collateralisation bringing more credit risk.
• Limited supply of liquidity and balance sheet capacity from bank counterparties.

So, asset managers need now – more than ever – advanced analytics that allow them to:

• Maintain control of investors’ assets: As you post more and more margin, you have a fiduciary responsibility to your investors to check that you are posting the right amount.
• Allocate collateral costs: With derivatives costs rising, it’s critical to be able to allocate funding costs back to specific accounts or portfolio managers.
• Trade more efficiently: Compare alternatives to express risk at minimal cost.
• Manage clearing capacity: Track IM limits imposed by bank counterparties to ensure that you can to express the required risk.

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