10.19.2018

CME Joins Quantile NDF Optimisation Cycle

10.19.2018

Quantile Technologies (Quantile), the provider of multilateral compression and optimisation services for Financial Markets, today announced the successful completion of its initial NDF Margin Optimisation cycles with CME Group.

CME Group’s latest cycle generated over $1.2 billion in NDF clearing across multiple currency pairs from banks including Citi and Standard Chartered.

Quantile’s margin optimisation service enables dealers to benefit from the different product offerings and netting sets available at the leading global clearinghouses. Adding CME Group to Quantile’s optimisation run significantly reduces clients’ margin obligations, utilising multiple Central Counterparties (CCPs).

“By adding CME Group to our optimisation service we are able to amplify the risk reduction opportunities across our network, generating increased capital and margin benefits for all of our clients” said Andrew Williams, CEO of Quantile.  “The significant reduction in risk, and margin savings from this cycle are clear examples of the efficiencies that can be generated by taking part in these multi-dealer and multi-CCP processes.”

“As an active member of the initial optimisation runs, Standard Chartered has always sought to take advantage of every opportunity that will reduce the use of scarce resources. Since the commencement of the optimisation cycles we have seen significant savings in our overall margin requirements and by widening the number of participants, we see potential for increasing this benefit further” said Matt Turner, Director, XVA Trading at Standard Chartered.

“Including multiple CCPs in a single optimisation run gives market participants confidence that, regardless of where they choose to execute and clear trades, their risk will be optimised via our post trade service” said Varqa Abyaneh, Chief Product Officer of Quantile. “This helps mitigate concerns surrounding market fragmentation and the formation of independent liquidity pools.”

Quantile’s optimisation service is live at the G15 dealers, CME Group and LCH.

Source: Quantile

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