SocGen Prime Services improves portfolio margining
20 May 2015 New York
Image: Shutterstock
Societe Generale Prime Services has launched a portfolio margining service for clients trading on the CME Group exchange.
The new service means that clients can treat interest rate swaps (IRS) contracts and exchange traded futures as one single portfolio, and should result in reduced margins when trading CME group products.
At CME Group, portfolios of IRS and futures contracts are created by booking a client’s listed futures on to their legal segregation with operational commingling (LSOC) account.
SocGen has now implemented CME Group’s ‘Optimizer’ toolkit for facilitating portfolio margin process for clients. This should lead to more efficient margins, without an increase in costs.
Nicholas Gionfriddo, head of over-the-counter (OTC) clearing sales for Societe Generale Prime Services in the Americas, said: "This important upgrade to our clearing business allows our clients to optimise their cost of collateral as well as take advantage of capital efficiencies."
The new service means that clients can treat interest rate swaps (IRS) contracts and exchange traded futures as one single portfolio, and should result in reduced margins when trading CME group products.
At CME Group, portfolios of IRS and futures contracts are created by booking a client’s listed futures on to their legal segregation with operational commingling (LSOC) account.
SocGen has now implemented CME Group’s ‘Optimizer’ toolkit for facilitating portfolio margin process for clients. This should lead to more efficient margins, without an increase in costs.
Nicholas Gionfriddo, head of over-the-counter (OTC) clearing sales for Societe Generale Prime Services in the Americas, said: "This important upgrade to our clearing business allows our clients to optimise their cost of collateral as well as take advantage of capital efficiencies."
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