Aspect Capital Expands Use of OpenGamma
Posted by Colin Lambert. Last updated: March 3, 2021
Systematic hedge fund Aspect Capital has expanded its relationship with margin optimisation provider OpenGamma as it seeks to trade in new markets.
The firms say that trading new markets comes with hidden challenges, for example, futures and options contracts trade on local country exchanges, and each exchange has its own specific approach for calculating derivatives margin.
To help control risk and manage liquidity, it is important that the investment manager is able to predict the derivatives margin requirements from current, and potential new strategies. This requires access to margin analytics that cover the specific methodologies used in each local market.
“As the regulatory landscape for margin evolves and we continue to diversify our product range, OpenGamma’s intuitive platform and expertise in margin replication provide a valuable tool to help optimise cash usage in a high cost, low interest rate environment,” says Jake Thornton, head of market risk at Aspect Capital. “We are delighted to be working with OpenGamma to further integrate their margin replication into the Aspect workflow.”
Peter Rippon, CEO of OpenGamma, adds, “The evolving derivatives landscape has increased the demand for analytics that allow financial institutions to proactively manage margin requirements. Our expanded partnership with Aspect Capital will broaden the delivery of operational efficiencies for their derivatives trading by tracking the consumption of margin across a wide range of markets and multiple prime brokers.”