Margin Analytics Software

Do you...

Work at a pension fund?

Did you know you could save 53% in initial margin by clearing now? Here's how...

Post-2008 regulation has radically changed derivatives markets. Trading practices have changed, costs are rising, and every firm will soon be posting hundreds of millions of dollars of investor assets to third parties.

post-crisis regulation graph

As a result, pension funds are now faced with a number of challenges, which include:

  • Increased cost of using derivatives.
  • More operational complexity.
  • More collateralisation bringing more credit risk.
  • Limited supply of liquidity and balance sheet capacity from bank counterparties.

So, pension funds need now – more than ever – advanced analytics that allow them to:

  • Maintain control of investors’ assets: As you post more and more margin, you have a fiduciary responsibility to your investors to check that you are posting the right amount.
  • Allocate collateral costs: With derivatives costs rising, it’s critical to be able to allocate funding costs back to specific accounts or portfolio managers.
  • Trade more efficiently: Compare alternatives to express risk at minimal cost.
  • Manage clearing capacity: Track IM limits imposed by bank counterparties to ensure that you can to express the required risk.

Our latest analysis shows pension funds can save up to 53% in initial margin by choosing to clear voluntarily ahead of the introduction of UMR. This is a cost saving of 0.7 bps for a 10 year trade, which increases to 1.8bps for 30 year trade.

 

Read the report here >

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

Unique coverage of the four rates CCPs, including EUREX and JSCC and SIMM

How you can save margin

Our Margin Solution allows pension 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.

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

As seen in