Margin variation deadline prompts TriOptima boost
02 November 2016 London
Image: Shutterstock
TriOptima is seeing an uptick in interest in its triResolve Margin service as the implementation date of new margin variation rules for non-cleared over-the-counter (OTC) derivatives gets ever closer.
Since 2016, 20 new financial institutions have gone live with the service, including dealers, buy-side firms and corporates. TriOptima is working with 70 additional firms in the testing process.
The new rules will apply to firms that hold a portfolio of non-cleared derivatives, and will require counterparties to exchange valuations of their variation margins, meaning increased margin call volumes and additional regulatory compliance documentation.
Changes will come into effect on 1 March 2017.
TriOptima’s triResolve Margin is a collateral management service offering automated, exception-based margin processing.
It is designed to provide a transparent straight-through process and to address the additional volumes and complexity associated with the new rules.
Raf Pritchard, CEO of triResolve, said: “An historically high level of customisation in OTC derivatives collateral has contributed to current fragmented and manual operations.”
“The new rules are a catalyst, driving standardisation, automation and centralisation of the collateral process, as demonstrated by these new clients and many further firms we have in the testing phase that recognise the benefits of triResolve Margin’s integrated approach.”
Since 2016, 20 new financial institutions have gone live with the service, including dealers, buy-side firms and corporates. TriOptima is working with 70 additional firms in the testing process.
The new rules will apply to firms that hold a portfolio of non-cleared derivatives, and will require counterparties to exchange valuations of their variation margins, meaning increased margin call volumes and additional regulatory compliance documentation.
Changes will come into effect on 1 March 2017.
TriOptima’s triResolve Margin is a collateral management service offering automated, exception-based margin processing.
It is designed to provide a transparent straight-through process and to address the additional volumes and complexity associated with the new rules.
Raf Pritchard, CEO of triResolve, said: “An historically high level of customisation in OTC derivatives collateral has contributed to current fragmented and manual operations.”
“The new rules are a catalyst, driving standardisation, automation and centralisation of the collateral process, as demonstrated by these new clients and many further firms we have in the testing phase that recognise the benefits of triResolve Margin’s integrated approach.”
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