TriOptima, a post-trade infrastructure provider, announced the launch of triCalculate IM Analytics to provide crucial insight into the options for initial margin (IM) calculation.
The tool will further help with the identification and prioritization of in-scope counterparties, aiding trading decisions to reduce future IM costs.
According to TriOptima, the new analytical service will support organizations that are in-scope for Phases 4 and 5 of the initial margin requirements, which come into effect in 2019-20. Both these phases are anticipated to pull in thousands of regional banks and buy-side participants with portfolios above €750bn and €8bn in notional value respectively.
Commenting on the development, Thomas Griffiths, co-CEO of triCalculate, said: “With less than a year to go until the next IM tranche, regulators will expect to see tried and tested IM calculation models supported by data well in advance of the September deadline. However, many firms are currently unaware if they will be affected, let alone what they need to do to meet the demands. triCalculate IM Analytics helps clients achieve compliance, overcome challenges and evolve with the market.”
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The new service will also support the Standard Initial Margin Model versus schedule decision-making process.
With CME-group’s acquisition of NEX group last year, TriOptima became a subsidiary of the American financial market company. The buyout deal was worth £3.9 billion ($5.5 billion).
Last Monday, TriOptima revealed that it had set a new record for its triReduce portfolio compression service grossing $250 trillion in notional value of trades at LCH SwapClear in 2018 marking an annual increment of 31 percent.
“2018 saw many records broken in OTC clearing, including those for newly cleared activity and for subsequent compression. We look forward to continuing to work with our buy and sell side clients, and ACSP partner TriOptima, to compress their cleared OTC risk in SwapClear and thereby realize ever-greater efficiencies,” said Michael Davie, global head of rates at LCH.