Materially reduce counterparty risk and the cost of funding initial margin (IM).
Our advanced algorithms optimise cleared and uncleared IM by analysing the risk of transactions between participants and rebalancing portfolios with new market risk-neutral trades that reduce risk and release capital. We can also sweep risk into LCH ForexClear to reduce cleared IM and enable you to benefit from standardised infrastructure.
Since launch we've eliminated billions of dollars in margin and delivered record-breaking performance. We know margin and capital requirements can create a funding drag on your portfolio, so we continue to enhance the service so we can deliver greater savings and more efficiency across the network – accelerating a safer financial system that’s better for all.
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How it works
Initial Margin Optimisation in action
Submit & validate data
Participants submit their data to our client portal directly or via API and set their risk constraints.
Identify risk rebalancing opportunities
We run our fast and intelligent optimisation engine to generate a proposal containing a set of new market risk-neutral trades.
Accept & execute
Our optimisation proposal is validated and accepted by participants and new trades are executed, reducing counterparty risk and the cost of funding IM.
Risk sweep (optional)
We can sweep risk into LCH ForexClear to reduce cleared IM and enable you to benefit from standardised infrastructure.
Asset classes we optimise
We can reduce counterparty risk and the cost of funding IM in both cleared and uncleared portfolios, including:
- FX
- Interest Rates
- Equities
Features & benefits
Key Features
Our optimisation runs regularly deliver record-breaking performance – reducing margin by 50%+ in some instances
Tailor your optimisation by setting risk, notional and resource metric contraints, to name a few
You can connect your data sources via API which streamlines the process and frees up your internal resources
Our process is the quickest available and is complete within five hours
Our extensive, rapidly growing network includes all of the top-tier global banks, regional banks and buy-side firms
We offer free no-obligation testing, so you can visualise your results before making a commitment
Awards
Award-winning performance
Optimisation Service of the Year
Global Capital Derivatives Awards 2024, 2023, 2022 & 2021
Counterparty Risk Product of the Year
Risk.net Markets Technology Awards 2024
Service Provider of the Year
FTF News Technology Innovation Awards 2024 & 2022
Best OTC Derivatives Margining Solution
FTF News Technology Innovation Awards 2023
Driving the derivatives industry forward
We offer more than just Initial Margin Optimisation. Find out how we can optimise your portfolio.
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