Osttra Optimises with LCH SwapAgent
Posted by Colin Lambert. Last updated: March 9, 2023
Osttra has announced that its TriBalance Capital Optimisation service is now live with SA-CCR optimisation of settled-to-market netting sets by proposing new overlay trades designated into SwapAgent. The functionality is now available in both interest rate and FX optimisation runs.
In December last year Osttra says it completed the first interest rate cycle where it optimised bilateral and cleared exposures alongside participants settled-to-market exposures. The first FX cycle to include SwapAgent overlay trades followed shortly thereafter and was completed in January, it adds.
With SA-CCR increasingly impacting the costs of running a trading business, more focus is on risk-weighted assets (RWA) and the Leverage Ratio, as well as funding costs driven by Initial Margin (IM). Osttra says it is running frequent optimisation cycles in both FX and interest ates where our customers can proactively manage RWA and Leverage Ratio requirements, calculated using SA-CCR or Internal Model Method, while simultaneously optimising Initial Margin.
“We welcome Osstra TriBalance using SwapAgent’s risk management and standardisation process for the bilateral market as a building block in their margin and capital optimisation,” says Nathan Ondyak, global head of SwapAgent.