VERMEG and Cassini Systems have joined forces to assist financial institutions in complying with initial margin (IM) requirements for uncleared over-the-counter (OTC) derivatives, exchange-traded derivatives and prime brokerage.
VERMEG has integrated Cassini’s margin analytics platform into its COLLINE collateral suite, which should create cost efficiencies and help clients to meet requirements of the Uncleared Margin Rules (UMR).
As margin requirements have continued to increase across different business lines such as OTC derivatives, repo and securities lending, firms are under greater pressure to capture and attribute how margin impacts the front and back office alike.
The VERMEG-Cassini partnership provides clients with a comprehensive workflow for managing intraday and end-of-day collateral requirements centrally within COLLINE’s standardised workflow inclusive of collateral optimisation.
The integration includes Cassini’s Standard Initial Margin Model (SIMMTM) and Standard Approach calculation service at pre- and post-trade as well as margin methodologies of exchanges, central counterparties (CCPs) and prime brokers providing firms full transparency across all asset classes.
COLLINE is VERMEG’s integrated platform for cross-product collateral management supporting cleared and uncleared derivatives in all asset classes.
Available as a Software-as-a-Service (SaaS), client-cloud, or on-premise offering, COLLINE’s modular architecture enables organisations of any size to select those features that best support their needs and scale as their business grows.
Cassini’s platform provides a full front-to-back solution covering margin, collateral and cost analytics for all classes of cleared and uncleared OTC derivatives as well as futures and options. It allows clients to bring post-trade cost analytics into the pre-trade process.
Liam Huxley, CEO of Cassini Systems, said, “As UMR reaches phase 6 and impacts the full range of buyside firms, the need for a complete and flexible, front-to-back SIMM calculation, including the generation of sensitivities, is critical.
Wassel Dammak, head of collateral solutions strategy at VERMEG, added, “By September 2022, many firms will be impacted globally by UMR. The combination of COLLINE’s process automation with Cassini’s margin analytics will enable clients to leverage a powerful and robust one-stop-shop solution to manage complex business and regulatory requirements.”
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