porting and novation
reduce your initial margin by moving offsetting trades
What is Porting and Novation?
Our service can show how moving uncleared trades into clearing can reduce risk and IM, saving cost. Likewise, the service can show where trades could be moved between clearing brokers to achieve a similar risk reduction, within the same CCP context.
Our analysis also shows the IM change on any portfolio remaining after the novation could be applied.
The net risk across cleared and uncleared portfolios may be fungible. Our service gives you insight into opportunities to:
Move cleared trades between FCMs within the same CCP to reduce IM
Move uncleared trades into clearing to offset cleared IM
Optimize your portfolio for a net reduction in IM
Features AND Benefits
Features
Define the agreements to be analysed
Look for directional offsets
Look for porting risk reductions
Full display of the after-state to explain potential outcome
Full analysis of the IM on trades remaining outside clearing
Benefits
Reveal unknown risk reduction opportunities
Balance portfolio risk to reduce IM
Reduce cost by reducing IM overall
See a side-by-side comparison of the risk profile before and after porting
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