Tradeweb Integrates Margin Optimisation Analytics
Tradeweb Markets Inc. a leading global operator of electronic marketplaces for rates, credit, equities and money markets, announced its collaboration with two leading margin optimisation providers, Cassini Systems and OpenGamma, to offer clients a choice of best-of-breed vendor access to life-cycle cost analytics, including initial margin, collateral, clearing fees, brokerage and trading costs.
Tradeweb’s integration of margin optimisation analytics with its interest rate derivatives platform will seamlessly provide institutional investors with pre-trade initial margin calculations, as well as real-time insight into trade execution options, such as optimal clearing venue and clearing broker selections. As a result, Tradeweb clients will be better able to minimize trade life-time costs and prove best execution.
“Tradeweb continues to connect markets, this time by bringing together our award-winning rates derivatives marketplace and pre-trade analytics and margin calculation specialists,” said Enrico Bruni, head of Europe and Asia business at Tradeweb. “Our strategic alliance with Cassini and OpenGamma will equip investors with flexibility and choice, when selecting the best way to satisfy their margin and best execution requirements.”
Following the 2008 financial crisis, global regulators introduced the phased implementation of margin requirements for non-centrally cleared derivatives, most widely known as Uncleared Margin Rules (UMR). The final two phases of UMR in September 2020 and 2021 will bring into scope a significant number of new counterparties, creating increased demand for tools that help evaluate the true life-time cost of trading.
“We are delighted to be joining forces with Tradeweb and, for the first time, to be giving traders enhanced access to best execution of interest rate derivatives, which now also captures post-trade costs and capital impact,” said Liam Huxley, CEO and Founder of Cassini. “Thanks to our alignment, Tradeweb clients will be able to use Cassini’s unique analytics toolset to calculate the full life-time cost of a trade.”
“Our collaboration with one of the leading marketplaces for interest rate derivatives is a major step in providing capital efficiency to the buy-side,” said Peter Rippon, CEO of OpenGamma. “By adding our renowned margin analytics onto Tradeweb’s execution platform, firms will have access to unique CCP optimisation models that help them address the funding challenges created by new regulation.”
Tradeweb’s integration of margin analytics within the execution workflow will significantly enhance the trading experience for buy-side firms, ultimately helping them make smarter investment decisions. Once clients have onboarded with the vendor of their choice, they will be able to check the margin impact of interest rate swap trades on their portfolios pre-trade.
“The ability to connect to margin optimisation solutions on Tradeweb will allow us to further improve managing costs efficiently across the trade life-cycle, a key component of our investment process,” said Christoph Hock, head of multi-asset trading at Union Investment. “We look forward to using this innovative solution, which will help us ensure a well-informed, cost-efficient, and regulatory compliant trading workflow ahead of key industry reforms.”
Since 2005, Tradeweb’s interest rate derivatives platform has been providing swaps traders with flexible, efficient solutions that help them execute their trading strategies, while navigating the evolving regulatory environment. Last month, Tradeweb announced the launch of multi-asset packages trading on its derivatives platform, streamlining the simultaneous execution of interest rate swaps, inflation swaps and government bonds in a single transaction.
RQD said it offers the first clearing platform built entirely on cloud-native, real-time technology.
Less risk and increased speed will lead to lower costs and improved outcomes for investors.
IRM 2.0 allows for offsets to be reflected in the final initial margin value.
FTX US Derivatives is aiming to offer portfolio margining for crypto contracts.
triBalance allows banks to reduce risk in multiple CCPs concurrently.