TriOptima Launches Initial Margin Analytics Tool

TriOptima, a post-trade infrastructure provider, announced the launch of triCalculate IM Analytics Analytics Analytics may be defined as the detection, analysis, and relay of consequential patterns in data. Analytics also seeks to explain or accurately reflect the relationship between data and effective decision-making. In the trading space, analytics are applied in a predictive manner in an attempt to forecast the price more accurately. This predictive model of analytics generally involves the analysis of historical price patterns that are used in an attempt to determine certain price outcomes. Analy Analytics may be defined as the detection, analysis, and relay of consequential patterns in data. Analytics also seeks to explain or accurately reflect the relationship between data and effective decision-making. In the trading space, analytics are applied in a predictive manner in an attempt to forecast the price more accurately. This predictive model of analytics generally involves the analysis of historical price patterns that are used in an attempt to determine certain price outcomes. Analy Read this Term to provide crucial insight into the options for initial margin (IM) calculation.

The tool will further help with the identification and prioritization of in-scope counterparties, aiding trading decisions to reduce future IM costs.

According to TriOptima, the new analytical service will support organizations that are in-scope for Phases 4 and 5 of the initial margin requirements, which come into effect in 2019-20. Both these phases are anticipated to pull in thousands of regional banks and Buy-Side Buy-Side The buy-side is comprised of firms in the financial industry that purchase securities and are accompanied by account investment managers, pension funds, and hedge funds.The buy-side is composed of those that buy and invest large sums of securities with the intention of generating a lucrative return or have their funds managed. The Buy-Side ExplainedIn terms of Wall Street, the buy-side includes investment institutions that purchase securities, stocks, or other financial instruments with the aim The buy-side is comprised of firms in the financial industry that purchase securities and are accompanied by account investment managers, pension funds, and hedge funds.The buy-side is composed of those that buy and invest large sums of securities with the intention of generating a lucrative return or have their funds managed. The Buy-Side ExplainedIn terms of Wall Street, the buy-side includes investment institutions that purchase securities, stocks, or other financial instruments with the aim Read this Term participants with portfolios above €750bn and €8bn in notional value respectively.

Commenting on the development, Thomas Griffiths, co-CEO of triCalculate, said: “With less than a year to go until the next IM tranche, regulators will expect to see tried and tested IM calculation models supported by data well in advance of the September deadline. However, many firms are currently unaware if they will be affected, let alone what they need to do to meet the demands. triCalculate IM Analytics helps clients achieve compliance, overcome challenges and evolve with the market.”

The new service will also support the Standard Initial Margin Model versus schedule decision-making process.

With CME-group’s acquisition of NEX group last year, TriOptima became a subsidiary of the American financial market company. The buyout deal was worth £3.9 billion ($5.5 billion).

Record-Breaking Portfolio

Last Monday, TriOptima revealed that it had set a new record for its triReduce portfolio compression service grossing $250 trillion in notional value of trades at LCH SwapClear in 2018 marking an annual increment of 31 percent.

"2018 saw many records broken in OTC clearing, including those for newly cleared activity and for subsequent compression. We look forward to continuing to work with our buy and sell side clients, and ACSP partner TriOptima, to compress their cleared OTC risk in SwapClear and thereby realize ever-greater efficiencies," said Michael Davie, global head of rates at LCH.