Firms Adopt Clearing Solutions09.22.2011
Capital and margin management and enhanced STP top list of must-haves.
The evolving regulatory environment makes it mandatory for financial firms to respond quickly to clearing regulatory requirements, increase transparency and enhance straight-through processing capabilities, while minimizing risk.
In response to market demands, Misys is providing financial institutions with advanced STP, a comprehensive trade repository, and cross-asset collateral and margin management for both OTC and exchange traded derivatives.
“Over the coming year, the OTC derivatives market could face some of the most significant changes in its history,” Denny Dewnarain, deputy managing director, France, for Misys treasury and capital markets, told Markets Media.
“Market events and financial volatility have led regulators to call for more transparency and automation, enhanced STP, better risk mitigation and improvements to capital and margin management,” he said.
Adopting a componentized approach to development, Misys has enhanced its Summit FT solution to enable customers to efficiently to central clearing requirements as they arise, with minimal disruption and risk.
Summit FT is a cross-asset front-to-back solution specializing in derivatives and structured products, which is used by more than 150 firms, including sell-side banks, asset servicers, development banks and asset managers.
“These enhancements ensure that firms can effectively manage the complexity associated with multi-participant workflow and meet regulatory requirements for margin and collateral management in a single, comprehensive system,” said Dewnarain.
Offered as extensions of the existing Summit FT solution, users can adopt a ‘componentized’ approach, adding new functionality as and when they need it.
“These enhancements ensure that customers can manage the complexity associated with multi-participant workflow effectively, and meet requirements for margin and collateral management in a single, comprehensive system,” Dewnarain said.
By offering these enhancements as extensions of the existing Summit FT solution, customers can meet current and future requirements for increased transparency and improved risk management quickly and easily.
Through a partnership with MarkitServ, Misys customers now have direct connectivity to central counterparties (CCP), SEFs and trade repositories, significantly simplifying the trade workflow.
“Leveraging this seamless connectivity, customers benefit from real-time bilateral trade routing, affirmation, matching, allocation, confirmation, give-up and reporting for both cleared and non-cleared OTC derivative trades,” Dewnarain said.
The clearinghouses will be using a VaR methodology.
The US regulated cryptocurrency exchange has acquired Embed Clearing.
'Crypto carnage’ has shown how meaningful protections for investors, markets, and the public are needed.
The enhanced margining model strengthens resilience and boosts capital efficiency.
Nearly all cleared activity is in non-deliverable forwards (NDFs).