Bloomberg Integrates LCH.Clearnet's Swaps Margin Calculator

Ben Macdonald
The SMART collaboration was led by Bloomberg's global head of product, Ben Macdonald.

Bloomberg's Professional Service can now directly access LCH's SwapClear Margin Approximation Risk Tool (SMART) to determine capital funding requirements for swaps.

SMART is designed to help users anticipate and manage how large price movements affect capital needs. By locating risk analytics on the same platform as clearing and execution portals, the collaboration will allow Bloomberg clients to instantaneously simulate portfolio exposure and pre-cleared margin requirements, with no additional cost.

Bloomberg Professional Service is the first multi-asset trade execution platform to integrate the tool, with major buy-side firms including Scotland-based Aberdeen Asset Management among its early proponents.

"As a result of mandatory clearing, the need for on-demand margin analysis is critical, and accessing a clearinghouse's margin calculations helps us to manage investments and operations," says Matthew Lynes, a portfolio manager at Aberdeen. "Bloomberg continues to provide solutions the industry needs to meet regulatory requirements and make better-informed investment decisions on behalf of our investors."

The financial information mainstay is among a handful of technology providers registering or intending to register as a swaps execution facility (SEF) under new Dodd-Frank Act rules.

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