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Two of Denmark’s largest pension and social security providers, ATP and PFA, have appointed the margin software vendor OpenGamma to provide cleared and uncleared derivatives analytics.
OpenGamma said the mandate comes at a pivotal time for the derivatives industry with voluntary over-the-counter (OTC) clearing on the increase in anticipation of the funding challenges non-centrally cleared derivatives margin requirements are set to have over the next 22 months.
The final implementation phases of the bilateral margin rules drafted Basel Committee on Banking Supervision and the International Organization of Securities Commissions (BCBS/IOSCO) will take effect in 2020 and 2021.
For PFA, the contract with OpenGamma is an expansion to its existing partnership on cleared derivatives, which began almost two years ago.
Commenting on the appointment, Lars Dreier, senior portfolio manager at ATP, points to the need for derivatives optimisation and said OpenGamma’s solution offers the ability to proactively manage a derivatives book “as efficiently as possible”.
Joe Midmore, OpenGamma's chief commercial officer, added: “These are transformational times for buy-side participants trading OTC derivatives and our recent traction in the Nordic market reflects the growing need for innovative margin analytics that meet the needs of large, sophisticated pension schemes and other asset owners."
