Tradition, Lmrkts Extend Trade Compression into Non-Deliverable Forwards

Inter-dealer broker works with fintech to complete Simm optimization for NDFs with clients.

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Exposure data from four banks, all of which are clients of Tradition, was used in Standard Initial Margin Model (Simm) optimization tests for NDFs, which resulted in the processing of 132 sides of trades completed within 8:09 minutes, a Simm reduction of between 32 and 43 percent.  

“The whole world is about the balance sheet and the efficiency in the balance sheet these days. This sort of process, and any sort of compression process, takes the pressure off the balance sheet and makes the balan