X-Margin or Cross Margin means that cleared OTC and ETD positions are margined together in a single Initial Margin calculation which takes into account the hedges between the two parts of the portfolio.
The most common Cross Margin offerings are provided by the big Interest Rate Swaps CCPs; CME, Eurex, LCH, JSCC. Fixed Income futures and options to be included in the standard swap margin algorithm are determined based on the benefit of offsets with the swaps compared with the impact of moving them from a 2 day Holding Period to 5 days to be in line with the OTC trades.
We invite you to learn more and read more of our content. Explore our collection of Ebooks, such as our Margin Management Ebook . Explore a wide selection of blogs on our insights page, such as our blog on How Optimisation Can Save You Up To 80% On The Cost Of Margin. Additionally, learn more about OpenGamma by watching our demo and taking a look at our product and solutions pages.
