How Cassini Helped a Global Investment Manager Optimize their Margin Strategy to Lower the Cost of Trading Derivatives

Case Study

Our customer is a global top-tier Investment Manager, with headquarters in New York and offices around the world. The firm has multiple billions in AUM.

They operate globally and manage funds across various investment strategies, including commodities, equities, fixed income, and credit. As part of these strategies, the firm employs extensive use of derivative products, carrying significant margin requirements. 

More specifically, the firm had a robust trading strategy in place but identified the growing need to understand the drivers of their margin, so that they could offset that cost and free up cash for further investment, as well as avoid cash-shortage scenarios.

The firm was seeking a tool that would allow them to trade in a margin-aware & margin optimal way, as well as a tool that allows them to reduce margin in the most practical way, when the need arises. With this tool, they were looking to raise their unencumbered cash levels with growing
trading activity.
 
In addition, the firm was looking to comply with the Uncleared Margin Rules (UMR), through ISDA SIMM®. 
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