Margin Analytics Software

Are you responsible for...

Margin optimisation at a bank?

Here’s how to reduce your initial margin costs by up to $3 million every year...

Post-2008 regulation and changes to market structure have dramatically increased trading costs for banks.

Why?

Well, posting initial margin to CCPs ties up capital, costing big banks more than $10 million in funding costs every year. In 2018 at least $300 billion of initial margin will be posted across the top 4 IRS and 6 ETD CCPs.

On top of this, Brexit uncertainty has made it more likely the majority EUR swaps will relocate inside the EU. And this will push up margin requirements even more. At the same time, ring-fencing rules have limited some banks’ access to cheap sources of collateral.  

All these factors make it more important than ever for banks to actively track initial margin to be able to lower costs.

We are the number 1 provider of OTC margin calculations for tier 1 banks

5 of the top 10 global banks use our software to actively reduce their initial margin costs

The answer

Our Margin Analytics Solution for banks allows you to rapidly reduce the cost of initial margin by letting you:

01
Learn the margin required for new and predefined trades

Spot the CCP with the lowest initial margin and financing costs for individual trades or common strategies like outright, curves and flies.

02
View lifetime margin costs (MVA)

Easily price client trades with an accurate view of spot and lifetime funding costs.

03
Identify CCP Switch Opportunities

Quickly compare risk transfers between CCPs based on the respective MVA costs to see opportunities to reduce spending.

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Want to know more?

Banks have to support up to 4 OTC CCPs – each with their own methodology and market data – to be able to manage ever increasing margin requirements successfully.

This either means: building an internal solution or outsourcing.

An internal build ties up resources and budget. Your solution will require maintenance to keep up with changing product coverage and data formats. And your solution will be the same as other banks. Our team have worked with top tier banks to build a solution that contains all the data analytics needed to optimise margin as well as identify opportunities across CCPs – a level of coverage our clients haven’t been able to achieve alone.

Simple Set-Up

Get Going.
Fast.

We have you set up in hours. At no cost.
Removing all risk.

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Data Input

Integrating your data is our problem not yours

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Simulations

We run millions of calculations using our proprietary analytics

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Results

Actionable recommendations for immediate cost savings

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