OpenGamma, a leading margin optimisation provider, today announced its collaboration with IHS Markit, a world leader in critical information, analytics and solutions, to help mutual clients reduce the cost of margin management. The best-of-breed offering will unite OpenGamma’s pre-trade margin analytics with IHS Markit’s post-trade derivatives calculation service, providing end-to-end support for in-scope entities.
The post-trade calculations extend from IHS Markit’s award-winning Portfolio Valuations business, which is recognized for its quality of service and 15 years of expertise across complex and exotic products, as well as CDS pricing and bank consensus data for illiquid derivatives. When combined with OpenGamma’s strength in margin analytics for cleared and bilateral derivatives, mutual clients can fully manage pre- and post-trade requirements through a single solution with flexible delivery options.
The collaboration comes after global regulators introduced a one-year delay to phases five and six of margin requirements for non-centrally cleared derivatives, more commonly known as Uncleared Margin Rules (UMR). The final two phases of UMR, scheduled for September 2021 and September 2022 respectively, will bring into scope numerous institutional asset managers, creating increased demand for tools that help reduce the cost of posting margin.
“Together with OpenGamma, we are excited to help firms achieve regulatory compliance and a competitive edge through margin validation and optimisation,” said Hiroshi Tanase, Executive Director at IHS Markit. “Our forward-looking solution, powered by highly-accurate margin analytics and calculations, can effectively streamline margin workflows and OTC derivatives trading to enable cost mitigation.”
“Asset managers are currently working out how to best use the time afforded to them by the UMR delay,” added Peter Rippon, CEO of OpenGamma. “Many firms are underestimating the complexity involved in pricing bilateral derivatives. IHS Markit is one of the very few firms that has the proven pedigree in this area. Together, our combined solution offers full coverage for both cleared and bilateral derivatives.”
OpenGamma is a derivatives analytics firm with unparalleled expertise across bilateral OTC and cleared margin methodologies, backed by CME, JSCC, Accel and Dawn. Today, they are trusted by the largest and most sophisticated global banks and fund managers who depend on their pre and post trade margin analytics to drive trading and treasury costs down. OpenGamma’s quantitative depth and extensive asset class coverage enables users to dynamically manage their funding, liquidity and optimisation requirements across bilateral, SIMM and cleared derivatives portfolios.
About IHS Markit
IHS Markit (NYSE:INFO) is a world leader in critical information, analytics and solutions for the major industries and markets that drive economies worldwide. The company delivers next-generation information, analytics and solutions to customers in business, finance and government, improving their operational efficiency and providing deep insights that lead to well-informed, confident decisions. IHS Markit has more than 50,000 business and government customers, including 80 percent of the Fortune Global 500 and the world’s leading financial institutions. Headquartered in London, IHS Markit is committed to sustainable, profitable growth.