Treasury and middle office

Portfolios build up many individual trades which attract a capital charge based on gross notional. Portfolios also develop a risk profile which drives up IM and underlying costs. Managing a portfolio in the long term means knowing answers to questions such as:

• How can I reduce the gross notional of my cleared portfolio?
• In what way are the strategies, desks and portfolios driving IM?
• How can I move eligible trades into clearing
  and reduce IM?
• What are the underlying cost drivers for the portfolio?

The front office are driven by portfolio goals for return on investment. Do they always take into account the indirect costs of their decisions? You need the tools to understand and allocate costs back to the front office to give them a true economic picture of their activity.

• How is IM changing over time?
• How can IM cost be allocated back to an entity / portfolio / strategy or trade?
• Do I need to wait until the end of the day to get results? (Real - time and on - demand with Cassini)
• What margin limits have been consumed?

Individual trade decisions taken on a day-to-day basis can undermine portfolio returns. In the long term you need the tools to understand your portfolio behaviour.

Do you know:

• How your portfolio will consume margin over its lifetime?
• What options there are to compress your cleared portfolio and reduce capital?
• Which trades could be moved into clearing to reduce IM?
• How margin costs are attributed to strategies, portfolios and funds?