SLIB updates its clearing risk management solution
20 October 2014 London
Image: Shutterstock
SLIB has implemented substantial extensions in its Clearing Risk Management (SLIB CRMS) solution, inspired by the European Market Infrastructure Regulation (EMIR).
SLIB has replicated the new regulatory features, as interpreted by each of its central counterparties (CCPs), by extending SLIB’s native implementations of the margin algorithms of all the CCPs covered in its CRMS system.
One particular challenge, according to SLIB, has been the implementation of the new EMIR elements at the client level, where the general clearing member (GCM) computes and monitors margins on his clients.
Applying at this level strictly the same modalities as the CCP applies on the clearing member would not, in general, fully protect the GCM in the case of a client’s default. However, SLIB claim that the client procedures can guarantee full protection of the GCM.
As for intraday margins, SLIB CRMS has been supporting them since the product's inception, and for all CCPs. In this respect, SLIB's solution had already been EMIR-compliant.
SLIB has replicated the new regulatory features, as interpreted by each of its central counterparties (CCPs), by extending SLIB’s native implementations of the margin algorithms of all the CCPs covered in its CRMS system.
One particular challenge, according to SLIB, has been the implementation of the new EMIR elements at the client level, where the general clearing member (GCM) computes and monitors margins on his clients.
Applying at this level strictly the same modalities as the CCP applies on the clearing member would not, in general, fully protect the GCM in the case of a client’s default. However, SLIB claim that the client procedures can guarantee full protection of the GCM.
As for intraday margins, SLIB CRMS has been supporting them since the product's inception, and for all CCPs. In this respect, SLIB's solution had already been EMIR-compliant.
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