Margin Analytics Software

Do you want to...

Increase leverage or enhance your fund liquidity?

Here’s how to reduce your initial margin by 70%...

Hedge funds are faced with many challenges:

  • Assessing return on capital across their various strategies
  • Improving leverage and enhancing returns while…
  • Maintaining sufficient unencumbered cash levels to ensure liquidity.

Posting initial margin is a drain on capital, limiting leverage, tightening liquidity and ultimately shrinking returns. Post-crisis regulation is having a significant impact on margin requirements today with significant increases predicted over the next 2 years.

post-crisis regulation graph

For example, the introduction of liquidity add-ons by major CCPs have increased margin requirements by a massive 70% for large futures and swaps positions.

So, it’s no longer possible to make simple broker allocations and make the best use of initial margin. Managers have to, instead, begin actively tracking margin to be able to better allocate positions between clearing brokers. Even simple allocation changes can lead to 30% of overall margin savings.

We are used by 5 tier one banks and more than 20 buy-side firms across the globe

UNIQUE COVERAGE OF LCH, CME, EUREX, JSCC and SIMM

How you can save margin

Our Margin Solution allows hedge funds – like you – to make better trading decisions by letting you:

01
Identify opportunities to reduce initial margin

An 18% reduction ($28.8m) is available by more efficiently allocating risk between brokers.

02
View the risk moves providing the largest IM reductions

The top recommendation to move 20Y exposure from CITI to GS results in a $15.3m IM reduction.

03
Act on it

Drill down to view existing trades that best fit the recommended risk move, and generate porting instructions in the CCP format.

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Simple Set-Up

Get Going.
Fast.

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

Receive the specific output required  for immediate regulatory compliance

Coverage includes:

ETD – Major exchanges including CME, Eurex, ICE, SGX, HKEX, JSCC

Cleared OTC – LCH, CME, JSCC, Eurex

Bilateral OTC – SIMM, prime broker portfolio margin (Global Netting Agreements)

Are you and your hedge fund ready for MIFID II’s Cost and Charges requirement?

Our total cost tool lets you calculate implicit and explicit costs for derivatives and cash products. Take a look now >

 

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