CloudMargin and OpenGamma improve OTC clearing 19 October 2015London Reporter: Drew Nicol
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CloudMargin and OpenGamma are joining forces to tackle clients’ increasingly complex risk management needs.
The joint venture aims to assist clients with challenges arising from the central clearing obligations for over-the-counter (OTC) derivatives.
CloudMargin’s collateral management platform will be integrated with OpenGamma’s margin analytics to provide clients with a single portal to validate clearinghouse margin calls from their clearing broker and ‘what-if’ tools to optimise their choice of clearing brokers and clearing venues.
Stuart McHardy, co-founder of CloudMargin, commented: “This responds directly to our clients’ requests for pre-trade value add services and far more transparency around the collateralisation of their cleared derivative portfolios with their clearing brokers.”
Dave Wong, head of buy-side strategy for OpenGamma, said: “As mandatory OTC derivative clearing is introduced to the buy-side, firms with OTC derivative positions will be subject to regular posting of margin to their brokers.”
“The CloudMargin and OpenGamma solution will allow those firms to independently validate and understand the margin they are charged by the CCPs. For CloudMargin customers, this service can be delivered without adding any overhead of systems deployment or data integration.”
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