Uncleared Margin Rules and the Rise of Initial Margin Optimization

As the industry prepares for the next phases of UMR, the full impact of the challenges it will face are still unknown.

Boston, June 5, 2019 – The onset of UMR has created an industry need for better management of initial margin. In a space that was once dominated by a single provider, competition and innovation have led to a breakup of the monopoly and the expansion of solutions. As the industry prepares for the next phase of the rules, third-party solutions providers are creating more ways to compress previously uncompressible portions of the market.

This report discusses the challenges and potential solutions affecting both buy-side and sell-side firms across asset classes, and it profiles Capitalab (a division of BGC Brokers L.P.), CME Group Inc., LMRKTS, Quantile Technologies Limited, Synswap, and TriOptima AB. The report is based on Aite Group’s interviews of over 25 global financial markets participants to obtain information about the challenges and solutions around UMR, and on statistical data that was obtained from Clarus Financial Technology, the International Swaps and Derivatives Association, and various CCPs.

This 31-page Impact Report contains eight figures and four tables. Clients of Aite Group’s Institutional Securities & Investments service can download this report, the corresponding charts, and the Executive Impact Deck.

This report mentions AcadiaSoft, BNY Mellon, Clearstream, CME Group Inc., Eurex Group, Euroclear, Hong Kong Securities and Clearing Limited (HKEX), IHS Markit MarkitSERV, Intercontinental Exchange (ICE), ICE Creditex, Japan Securities Clearing Corporation (JSCC), JPMorgan, LCH Group, Nasdaq, OpenGamma, Singapore Exchange (SGX), and Traiana.

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