TS Imagine, the trading, portfolio, and risk management solutions vendor, has introduced a new CCP Margin Calculator within its RiskSmart X platform, giving sell-side firms the ability to calculate, on demand using real time prices, the margin requirements from their central counterparties (CCPs).
RiskSmart X is specifically designed for prime brokers, risk managers, and operations executives at sell-side institutions. It provides tools to assess and manage risk exposure to various counterparts, and to prepare for regulatory changes, audits, and government inquiries. Since its launch last year, the product has enabled users to determine the margin needed from their buy-side clients. With the addition of the new CCP Margin Calculator, users can enhance their risk management capabilities by calculating the margin requirements from their exchange counterparts, as and when necessary.
“One of TS Imagine’s key differentiators is our ability to cover all asset classes in real time,” Andrew Morgan, President and Chief Revenue Officer of TS Imagine, tells TradingTech Insight. “While many businesses rely on batch or overnight processing to calculate margin, RiskSmart X enables this at the click of a button. Our primary focus up until now has been on helping FCMs and prime brokers manage their clients’ funding and obligations, offering sophisticated and complex risk management tools within RiskSmart X, including VaR, stress tests, and historical Monte Carlo simulations, which are essential for prime brokers and sophisticated hedge funds. With the introduction of the CCP margin calculator, we are now providing our clients the capability to manage the street-facing side of their operations.”
Morgan points out that since the G20 derivatives market reforms were initiated 15 years ago, global regulators have gradually expanded the range of instrument types that need to be cleared centrally, for obvious reasons such as financial stability and transparency. “As a result of those reforms, there has been approximately 20% compound annual growth in the number of centrally cleared trades, a trend that is expected to continue,” he says. “That means that more business lines are coming within the scope of these regulations. Another significant development is the increase in automated liquidity and algorithmic trading, which accelerates the velocity of trading. This heightened speed amplifies the potential for rapid market movements. Therefore, having real-time insight into market activity and being able to anticipate margin requirements across all relevant venues is exceptionally powerful.”
TS Imagine operates globally, with staff in every major financial centre, allowing for extensive coverage within RiskSmart X’s CCP Margin Calculator. Currently, the platform supports 33 clearinghouses, over 50 global exchanges, and 13 methodologies. Calculations are updated continuously throughout the trading day, and TS Imagine plans to expand its coverage in response to client needs and developments in global financial markets.
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