How pre trade collateral optimization can benefit the front office

Uncleared Margin Rules UMR and collateral drag

The current unprecedented volatility has led to significant swings in Mark-To-Markets (MTM) and increased margin calls.

Now more than ever, it is key that the front office are equipped with tools that will allow them to understand the costs, and drivers, of margin before they execute a trade.

Listen to Mohit Gupta, Senior Product Specialist at Cassini Systems, explaining why your front office needs access to collateral and cost optimization tools providing margin transparency, collateral sufficiency, and the ability to understand margin drivers – enabling you to reduce your margin costs.

Key take aways

– Empower your front office –

Specifically given current volatility

Ø Provide tools to determine the costs of a trade before trade execution

Ø Understand the drivers of margin costs before trading to make better informed decisions

Ø Give access to margin transparency, collateral checks, funding costs and CCP & Broker fees

Ø Optimise your margin to understand which positions consume the most margin

Ø Attribute your margin costs to the consumers of the margin

Ø Enable cost reduction across your entire firm, from pre trade to end of day!

Resources for you:

Ø How Pre-Trade IM Calculation can optimize and reduce collateral drag 

Ø Take control of IM with forecasting and optimization

Ø Evolution of Collateral: Moving Collateral Optimization into the front office