Under new regulations, derivatives now require daily margin, impacting the liquidity position of the firm.
Opengamma enables firms to find the balance between efficient margin funding and guaranteed liquidity, by helping collateral managers, operations and PMs manage margin proactively:
Liquidity Management – ‘how much cash do I need to meet margin requirements?’
Capacity Management – ‘Do I have available capacity to be able to trade?’
Best Execution – ‘What is the most cost effective place to trade?’
We’re constantly on the lookout for the right technology to drive efficiencies, and so are very excited to be partnering with OpenGamma. Their solution will form an important part of our overall approach to delivering operational efficiencies for derivatives for our clients.
Josh Ratner, Head of Operations at PIMCO
This is a natural add-on to the partnership we have had with OpenGamma on cleared derivatives for almost two years. Margin analytics is becoming more and more important for our business and OpenGamma provides the necessary tools for us to do these analytics.”
Thomas Kolling, Senior Portfolio Manager at PFA
This new solution provides us with the ability to proactively manage our derivatives book as efficiently as possible.”
Lars Dreier, Senior Portfolio Manager at ATP
Validate
Reconcile IM & VM calls against margin statements
Attribute
Allocate IM, VM and cash to desks and traders
Forecast
Predict tomorrow’s margin calls
Stress Test
Predict tomorrow’s margin calls
What-if
Calculate the cost of hedges pre-trade and identify the cheapest place to clear
Rebalance
Reduce IM requirements by optimising allocation across clearers and exchanges
OpenGamma for UMR compliance
OpenGamma has been SIMM licensed since 2017 and has been helping Phase IV, V and VI firms with:
Forecast
Market volatility can create drastic increases in margin - forecasting margin requirements across IM and VM requires replication of exchange models. OpenGamma forecasts both short- and long-term margin requirements, and allows you to back-test our cash buffer recommendations against actual margin calls to increase your capital efficiency.
Rebalance
A sub-optimal allocation of derivatives portfolios across clearing brokers and CCPs causes margin inefficiencies. These result in unnecessarily high financing costs. Our dynamic rebalancing engine creates actionable risk and position transfers that find a more efficient way to take the same market position with lower use of capital.
Validate
Over posting margin impacts liquidity, increases credit risk and leads to additional costs (fees and funding). OpenGamma connects directly to Clearing Brokers to receive daily statements and performs position and IM / VM reconciliation to validate the margin you post, reducing operational overheads and risks of errors.
Download our brochure
This research report summarises the findings from OpenGamma’s ‘Uncleared Margin Rules (UMR) impact analysis’ that we performed on behalf of 15 clients over the last 6 months. We also outline the steps your firm can take to minimise the impact of SIMM.
Download the ebook
SOC2 certified with 80+ internal security controls reviewed annually by EY.
We take responsibility for mapping, cleaning, and maintaining data directly from over 150 industry sources every day.
We deliver code changes into production within hours to keep the system running, even when industry data providers make unannounced changes.
Get in touch with us today.
OpenGamma Limited, 5th Floor, One New Change, London, EC4M 9AF
