clearing Costs

CCP costs originate from a variety of activities and sources. We have alternatives to keep clearing costs down.

CCPs charge for their services in a variety of ways. Costs can include:

  • Event based fees such as new trades
  • Annual portfolio holding fees
  • Lifecycle event fees such as terminations and compression
  • Account structure fees
  • Margin broken down into various components
  • A membership fee for direct members
  • Portfolio transfer fees


Cassini offers strategic alternatives to enable CCP costs to be managed and reduced.

With Cassini you can:

Measure IM on your cleared portfolio

Calculate IM on cleared, uncleared, ETD and Prime Broker portfolios

Compress your portfolio into IMM Swaps and Swap Futures

Move trades between FCMs to reduce margin

Optimize the assets posted to a CCP

Reduce IM by porting trades into Clearing

Your cleared portfolio will contain trades which are mandated to clear. The clearing mandate rules are specific and leave out some varieties of OTC trades which can be cleared, even if not mandatory.

Porting trades into clearing only makes sense if the outcome is margin reducing, something our porting service handles intelligently.

With Cassini you can:

Find trades which reduce cleared IM

Find ways to reduce IM by porting trades

Only find IM reducing trade porting scenarios

Understand the before/after impact of porting

take advantage of porting

switch trades between fcms

Industry good practice is to have multiple FCMs between you and each CCP. This reduces risk is one of your FCMs had operational or structural issues.

At the point of execution you may route trades due to market conditions and pricing, but later the effect of portfolio changes and market conditions may mean the net risk at each FCM could be re-balanced.

With Cassini you can:

Balance IM  between multiple FCMs with a single CCP

Reduce IM by porting trades between FCMs

Only find IM reducing trade porting scenarios

Understand the before/after impact of porting

take advantage of porting

compressing into imm swaps or swap futures

Evolution of the cleared swap market delivered interest rate products which are equivalent to OTC swaps. Eris Futures and MAC Swap Futures are an alternative way to transfer risk.

Both these products are cleared and have beneficial margin requirements:

  • Cleared OTC swap IM: 5-day or 7-day VaR
  • Cleared Swap Future IM: 2-day VaR 

With Cassini you can:

Select the target compression products

See a risk profile and replacement trade portfolio

Analyze cleared or uncleared portfolios

Understand the before/after impact of compression

take advantage of compression

WANT TO FIND OUT MORE ABOUT managing ccp costs?

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