New CCP system promises efficient collateral management
06 June 2017 Stockholm
Image: Shutterstock
Trading and clearing technology provider Cinnober has launched a risk management system for central counterparties (CCPs).
Cinnober’s TRADExpress CCP Risk offers a single point of access, enabling efficient risk and collateral management across all asset classes and instruments cleared by the CCP.
The first customer to implement the system is Japan Exchange Group, which plans to go live during 2018 with its new risk solution across the entire Japanese market of equities, bonds, futures, options, credit default swaps and interest rate swaps.
According to Cinnober, TRADExpress CCP Risk enables CCPs to run multiple risk models in parallel, allowing them to “migrate from old models to new, more sophisticated statistical approaches better fit for today’s versatile array of cleared contracts”.
“CCPs need to avoid overburdening market participants with excessive margin requirements without becoming a systemic risk to the financial industry,” said Mikael Öhman, chief architect risk solutions at Cinnober.
“For this, new methods and procedures that give a full view across all asset classes and instrument types are required, and that’s what we’re introducing with TRADExpress CCP Risk.”
Cinnober’s TRADExpress CCP Risk offers a single point of access, enabling efficient risk and collateral management across all asset classes and instruments cleared by the CCP.
The first customer to implement the system is Japan Exchange Group, which plans to go live during 2018 with its new risk solution across the entire Japanese market of equities, bonds, futures, options, credit default swaps and interest rate swaps.
According to Cinnober, TRADExpress CCP Risk enables CCPs to run multiple risk models in parallel, allowing them to “migrate from old models to new, more sophisticated statistical approaches better fit for today’s versatile array of cleared contracts”.
“CCPs need to avoid overburdening market participants with excessive margin requirements without becoming a systemic risk to the financial industry,” said Mikael Öhman, chief architect risk solutions at Cinnober.
“For this, new methods and procedures that give a full view across all asset classes and instrument types are required, and that’s what we’re introducing with TRADExpress CCP Risk.”
NO FEE, NO RISK
100% ON RETURNS If you invest in only one asset servicing news source this year, make sure it is your free subscription to Assegt Servicing Times
100% ON RETURNS If you invest in only one asset servicing news source this year, make sure it is your free subscription to Assegt Servicing Times
