Transcend reduces margin requirements with connectivity to OCC
21 October 2021 US
Image: denisismagilov/stock.adobe.com
Transcend has announced enhancements to its CCP Central solution, expanding its network of direct CCP connectivity and margin optimisation.
CCP Central, which streamlines margin and collateral management activities with a single CCP or across a global network of CCPs, now offers connectivity to the Options Clearing Corporation (OCC).
In addition to automating the process of posting collateral as margin to the OCC, Transcend is helping its clients to meet margin requirements more efficiently through advanced optimisation capabilities.
Transcend says it is aiding firms in systematically identifying and executing the securities movements that satisfy the lowest customer margin requirement. Ultimately, this helps firms reserve scarce collateral resources and improve liquidity while driving enhanced operational efficiency.
Patrick Tessier, derivatives product manager at Transcend says: “The OCC margin methodology is unique in that collateral pledged by members is assessed against their clearing positions. As a result, the collateral selected has the potential to increase or decrease a member’s overall risk and therefore margins.
“Nevertheless, most firms lack the technology to optimally select and pledge the collateral to reduce their margin requirement. CCP Central is changing this narrative, enabling customers to pledge the most optimal collateral.”
“Margin optimisation has become a critical component of the CCP business model,” adds Bimal Kadikar, CEO of Transcend. “With CCP Central’s optimisation capabilities, we are delivering both operational and financial leverage to our clients, resulting in millions of dollars in annualised savings.”
CCP Central, which streamlines margin and collateral management activities with a single CCP or across a global network of CCPs, now offers connectivity to the Options Clearing Corporation (OCC).
In addition to automating the process of posting collateral as margin to the OCC, Transcend is helping its clients to meet margin requirements more efficiently through advanced optimisation capabilities.
Transcend says it is aiding firms in systematically identifying and executing the securities movements that satisfy the lowest customer margin requirement. Ultimately, this helps firms reserve scarce collateral resources and improve liquidity while driving enhanced operational efficiency.
Patrick Tessier, derivatives product manager at Transcend says: “The OCC margin methodology is unique in that collateral pledged by members is assessed against their clearing positions. As a result, the collateral selected has the potential to increase or decrease a member’s overall risk and therefore margins.
“Nevertheless, most firms lack the technology to optimally select and pledge the collateral to reduce their margin requirement. CCP Central is changing this narrative, enabling customers to pledge the most optimal collateral.”
“Margin optimisation has become a critical component of the CCP business model,” adds Bimal Kadikar, CEO of Transcend. “With CCP Central’s optimisation capabilities, we are delivering both operational and financial leverage to our clients, resulting in millions of dollars in annualised savings.”
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