OpenGamma, a financial technology company, today announced that DRW, a major global principal trading firm, will use OpenGamma’s analytics in its treasury function to manage derivatives margin.
DRW was attracted to OpenGamma’s leading software-as-a-service (SaaS) solution as it seeks to expand its treasury capabilities in response to regulations such as Uncleared Margin Rules (UMR).
UMR regulation was set in motion at the 2009 G20 meeting following the global financial crisis and requires firms using over-the-counter derivatives to post margin on those transactions. These regulations require any trading strategy that uses leverage to optimize and be efficient with its use of collateral. OpenGamma’s solution will enable DRW to improve treasury processes by regularly evaluating alternative ways to put on new trades across both clearing houses and bilateral counterparties.
“We’ve been looking at technology solutions that can help us to adapt the processes we use for financing and cash management,” says Mark Wendland, Global Head of Treasury at DRW. “OpenGamma’s solution gives us unique coverage for the products we trade, and it will add efficiency to our trading operations.”
OpenGamma CEO Peter Rippon added, “We are incredibly proud to have been selected by DRW, a company with a visionary approach to driving efficiency in their operations.”