What is the impact of trading new markets on margin management?

There are hidden complexities to trading new markets. There are more margin algorithms to understand, additional file formats to support and large volumes of data that will need to be managed.

There are many reasons why firms may look to trade new markets.Whatever the reason, firms need to be able to optimise margin and manage their liquidity requirements, as well as being able to predict and validate their margin for any new market.

We review the impact of trading new markets on the ability to efficiently and effectively manage your margin requirements.

  • Details on the different margin algorithms that need to be supported and the various impacts they have on margin requirements
  • How different markets and exchanges or CCPs view risk, and the way that products are managed at different venues
  • How Variation Margin is treated differently across exchanges and products
  • Differences in trade representation and operational processes across markets and the potential impact on existing processes