Collateral Management

We are looking forward to next week when we are sponsoring the Collateral management session at the annual SimCorp IUCM event in the fascinating city of Milan.

At the event we will be showing the full range of Cassini’s pre and post trade analytics, and more importantly how these are integrated into Simcorp Dimension from Order Manager for pre-trade, to Collateral Manager for initial margin, attribution and SIMM capabilities.

Why is margin analysis more and more important?

Asset managers are more and more having to include margin and collateral impact into their trade decisions and operational processes, but there is no single target model, and no one set of analytics that is the right answer for every firm.

We provide margin calculation, optimisation, and analytics across all derivates asset classes, and can help answer all kinds of questions right across the trading lifecycle:

  • Pre trade – which broker or counterparty would require the least additional margin
  • Post trade – what is my intra day picture on margin requirements, and broker limits
  • End of day – Calculate my SIMM margin, or forecast my futures margin calls to ensure I have correct collateral and funding in place

Cassini and Simcorp – Integration equals Success

We partnered with Simcorp so we could bring our market leading analytics and flexible solutions to help Simcorp clients solve the problems that are most important right now and into the future.

Cassini and Simcorp have integrated our data and analytics and Collateral Manager workflows, and are in process of delivering further integration into Order Manager itself.

SIMM and bilateral margin is happening…

One subject we are sure will be an active discussion topic at the event will be the impact of Uncleared Margin Rules (UMRs) and the ISDA SIMMTM methodology. Most asset management firms will have to have a SIMM based calculation process in place for the 2019 or 2020 deadlines and you can’t rely on your counterparts for this.

Just some of the many challenges we are hearing from asset managers are around:

  • Each firm needs to calculate its own Post and Call amounts
  • Ability to do pre-trade assessment of SIMM impact
  • How to attribute SIMM based IM to trades or strategies

Many more subjects to discuss…

There are many interesting challenges in the asset management world right now, so we are looking forward to talking and listening to all participants over the three days. See you in Milan!