SocGen Prime Services (Newedge) Adds CME Group Portfolio Margining
- SocGen has announced that its prime group has begun to offer CME Group portfolio margining of traded futures and interest rate swaps
Societe Generale (SocGen) has announced that its prime services group, formerly known as Newedge, has begun to offer CME Group portfolio margining for its clients. The added benefit for clients is a unified margin structure where exchange traded futures and interest rate Swaps Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Read this Term (IRS) are combined into a single portfolio to allow for reduced margins when trading CME Group products. The margining works by allowing SocGen customers to place exchange traded contracts within their Legal Segregation with Operational Commingling (LSOC) account which is used for cleared IRSs.
The availability for portfolio margining across different asset classes has been a key differentiator for Newedge even before being acquired and absorbed into SocGen’s operations. The foundation of the service is the Prime Broker Prime Broker Prime brokers are the designation given to individuals handling a package of services offered by investment banks, wealth management firms, and securities dealers to hedge funds which need the ability to borrow securities and cash in order to be able to invest on a netted basis and achieve an absolute return.There are two types of prime brokers - bank and non-bank corporations. Traditionally major global investment banks have been the predominant players in the space, however recent years have p Prime brokers are the designation given to individuals handling a package of services offered by investment banks, wealth management firms, and securities dealers to hedge funds which need the ability to borrow securities and cash in order to be able to invest on a netted basis and achieve an absolute return.There are two types of prime brokers - bank and non-bank corporations. Traditionally major global investment banks have been the predominant players in the space, however recent years have p Read this Term’s cross-asset platform, FX Edge. As a cross-asset offering, it was created to allow prime customers to have a unified portfolio for both monitoring P&L and margin usage. For asset managers and traders, the consolidated portfolio reduces the need to distribute funds between accounts to meet credit requirements of different asset types.
Commenting about the integration with the CME Group, Nicholas Gionfriddo, Americas Head of OTC Clearing Sales for Societe Generale Prime Services, stated, “This important upgrade to our clearing business allows our clients to optimize their cost of collateral as well as take advantage of capital efficiencies. This investment also further affirms our commitment to OTC Client Clearing following our recent service enhancements introducing clearing for our FX NDF and CDS clients."
Societe Generale (SocGen) has announced that its prime services group, formerly known as Newedge, has begun to offer CME Group portfolio margining for its clients. The added benefit for clients is a unified margin structure where exchange traded futures and interest rate Swaps Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Read this Term (IRS) are combined into a single portfolio to allow for reduced margins when trading CME Group products. The margining works by allowing SocGen customers to place exchange traded contracts within their Legal Segregation with Operational Commingling (LSOC) account which is used for cleared IRSs.
The availability for portfolio margining across different asset classes has been a key differentiator for Newedge even before being acquired and absorbed into SocGen’s operations. The foundation of the service is the Prime Broker Prime Broker Prime brokers are the designation given to individuals handling a package of services offered by investment banks, wealth management firms, and securities dealers to hedge funds which need the ability to borrow securities and cash in order to be able to invest on a netted basis and achieve an absolute return.There are two types of prime brokers - bank and non-bank corporations. Traditionally major global investment banks have been the predominant players in the space, however recent years have p Prime brokers are the designation given to individuals handling a package of services offered by investment banks, wealth management firms, and securities dealers to hedge funds which need the ability to borrow securities and cash in order to be able to invest on a netted basis and achieve an absolute return.There are two types of prime brokers - bank and non-bank corporations. Traditionally major global investment banks have been the predominant players in the space, however recent years have p Read this Term’s cross-asset platform, FX Edge. As a cross-asset offering, it was created to allow prime customers to have a unified portfolio for both monitoring P&L and margin usage. For asset managers and traders, the consolidated portfolio reduces the need to distribute funds between accounts to meet credit requirements of different asset types.
Commenting about the integration with the CME Group, Nicholas Gionfriddo, Americas Head of OTC Clearing Sales for Societe Generale Prime Services, stated, “This important upgrade to our clearing business allows our clients to optimize their cost of collateral as well as take advantage of capital efficiencies. This investment also further affirms our commitment to OTC Client Clearing following our recent service enhancements introducing clearing for our FX NDF and CDS clients."