“In a world of increased capital requirements, market volatility hits financial firms harder as initial margin (IM) requirements can jump significantly. Our analysis reveals that IM requirements in times of stress can increase by up to a massive 94% – a dramatic and expensive increase in cash requirements that some may not be ready for.”
Munaj Ahmed, Product Manager at OpenGamma, The Impact of Market Volatility on your Initial Margin Explained
Volatile markets can impact your initial margin (IM) dramatically, our new research showing your requirements could jump by up to 94%.
Using the OpenGamma platform and unique set of data we have carried out stress testing research to determine the amount of IM you could be forced to post during periods of high volatility. We outline the results in this new guide, as well as ways to minimise the amount you need to post to protect your business from risk.
Inside we cover:
- Understand how margin requirements can be impacted by market events
- Prepare your firm for these jumps
- See how to correctly stress test your portfolios
- Determine ways to minimise margin at times of stress.