Walk and talk like a CCP
19 December 2013 London
Image: Shutterstock
Thinking like a CCP is the way to get ahead in the new cleared OTC world, was the conclusion formed from a recent whitepaper.
The whitepaper, from collateral management cloud technology provider CloudMargin, said that the adoption of CCPs in the OTC derivatives world creates a number of factors to consider for derivatives users, given that they are facing unprecedented levels of change with regulation driven central clearing taking effect.
"With regards to Initial Margin, a miscalibrated value can overstate the risk and require excess capital unnecessarily," the report continues. "Most firms want to validate CCP calculations, but lack the automation and technology of a platform like CloudMargin to do so."
"The report discusses how collateral agility is vital and the role technology plays," comments Andy Davies, co-founder and CEO of CloudMargin. "Having a clear collateral view makes operating an appropriate risk management strategy tangible."
The whitepaper, from collateral management cloud technology provider CloudMargin, said that the adoption of CCPs in the OTC derivatives world creates a number of factors to consider for derivatives users, given that they are facing unprecedented levels of change with regulation driven central clearing taking effect.
"With regards to Initial Margin, a miscalibrated value can overstate the risk and require excess capital unnecessarily," the report continues. "Most firms want to validate CCP calculations, but lack the automation and technology of a platform like CloudMargin to do so."
"The report discusses how collateral agility is vital and the role technology plays," comments Andy Davies, co-founder and CEO of CloudMargin. "Having a clear collateral view makes operating an appropriate risk management strategy tangible."
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