Buy-Side Technology Awards 2013: Best Buy-Side Risk Management Initiative—LCH.Clearnet
The buy side is behind the sell side when it comes to fully grasping the new market structure of cleared swaps under Dodd–Frank, the European Market Infrastructure Regulation (EMIR), and similar regulations. Many buy-side firms need help understanding how their risk profile is affected by the new margin requirements. Smart, with its on-demand margin calculations, helps them to not only better understand their risk, but also to achieve collateral efficiencies.
SwapClear members appreciated the functionality of Smart as a standalone offering, although they preferred a single solution that not only offered collateral estimation but also analytics, trade execution, and access to clearing. The integration with Bloomberg is a response to that. It allows all Bloomberg Professional Service subscribers to simulate their portfolios’ exposure to risk factors and perform instantaneous, consistent margin approximations, prior to clearing, at the point of execution, and for no additional cost.
“The introduction of on-demand margin analysis onto a platform that participants are already using to analyze risk and execute and submit trades for clearing reduces costs and enables participants to make better trading and risk management decisions,” says Daniel Maguire, head of SwapClear US.
Smart’s distributed margin-simulator architecture is unique among over-the-counter (OTC) derivatives central counterparties (CCPs) in that users can simulate calculations on their systems instead of sending the CCP portfolios and waiting for results. To stay prepared for a shift in the interest-rate environment, LCH.Clearnet implemented major enhancements to its pairs methodology in mid-2013.
“As a result of mandatory clearing requirements, the need for on-demand margin analysis is critical, and accessing a clearinghouse’s margin calculations on the Bloomberg Professional service helps me to manage my investment decisions and operations,” said Matthew Lynes, Aberdeen Asset Management portfolio manager, when the integration was announced. “Bloomberg continues to provide the solutions the industry needs in order to meet regulatory requirements and make better-informed investment decisions on behalf of our investors.”
"Smart’s distributed margin-simulator architecture is unique among over-the-counter derivatives central counterparties in that users can simulate calculations on their systems instead of sending the CCP portfolios and waiting for results."
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
More on Awards & Rankings
Witad Awards 2024: Technology innovator of the year (vendor)—Christy Bremner, SS&C Technologies
Christy Bremner, senior vice president, Institutional & Investment Management (I&IM) division at SS&C Technologies, wins technology innovator of the year (vendor) in the 2024 Women in Technology and Data Awards.
Witad Awards 2024: EDM professional of the year—Neslihan Yegul, S&P Global Market Intelligence
Neslihan Yegul, vice president, head of EDM and thinkFolio at S&P Global Market Intelligence, wins EDM professional of the year in the 2024 Women in Technology and Data Awards.
Witad Awards 2024: Technology innovator of the year (end-user)—Laura Hamilton, Bank of America
Laura Hamilton, global head of corporate treasury, credit risk, climate risk, and financial forecasting technology at Bank of America, wins technology innovator of the year (end-user) in the 2024 Women in Technology and Data Awards.
Witad Awards 2024: Vendor professional of the year (data and operations)—Joanna Davies, OSTTRA
Joanna Davies, head of trade processing at OSTTRA, wins vendor professional of the year (data and operations) in the 2024 Women in Technology and Data Awards.
Sell-Side Technology Awards 2024: Best sell-side front-office platform—Bloomberg
Product: Bloomberg TOMS
Most read
- Chris Edmonds takes the reins at ICE Fixed Income and Data Services
- Deutsche Börse democratizes data with Marketplace offering
- Sell-Side Technology Awards 2024: Best implementation at a sell-side firm—FlexTrade Systems