Vermeg Adds Margin Analytics
Posted by Colin Lambert. Last updated: January 10, 2022
Software firm Vermeg has added new margin analytics capabilities from Cassini Systems to its Colline platform, to help financial institutions comply with initial margin (IM) requirements for OTC derivatives.
The firm says that as margin requirements have continued to increase across different business lines such as OTC derivatives, repo and securities lending, firms are under greater pressure to capture and attribute how margin impacts the front and back office alike. The new partnership provides clients with a workflow for managing intraday and end-of-day collateral requirements centrally within Colline’s standardised workflow inclusive of collateral optimisation, it adds.
The integration includes Cassini’s Standard Initial Margin Model (SIMM) and Standard Approach calculation service at pre- and post-trade as well as margin methodologies of exchanges, central counterparties (CCPs) and prime brokers providing firms full transparency across all asset classes.
“As UMR reaches phase 6 and impacts the full range of buy-side firms, the need for a complete and flexible, front-to-back SIMM calculation, including the generation of sensitivities, is critical,” says Liam Huxley, CEO of Cassini Systems. “The time for these firms to prepare is now.”
Wassel Dammak, head of collateral solutions strategy at Vermeg, adds, “We are excited to partner up with Cassini to help clients more efficiently manage their margin by leveraging analytics at different stages of the collateral workflows. By September 2022, many firms will be impacted globally by UMR.”