DRW to adopt OpenGamma鈥檚 analytics to help meet UMR regulation
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DRW to adopt OpenGamma鈥檚 analytics to help meet UMR regulation 09 April 2020London Reporter: Maddie Saghir
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DRW, a global principal trading firm, is set to adopt OpenGamma鈥檚 analytics in its treasury function in response to regulations including the Uncleared Margin Rules (UMR).
As part of the new partnership, DRW will use the derivatives analytics tools in to manage derivatives margin.
Regulations like UMR require any trading strategy that uses leverage to optimise and be efficient with its use of collateral, OpenGamma explains.
According to the UK-based financial services provider, its solution will enable DRW to improve its treasury processes by regularly evaluating alternative ways to put on new trades across both clearinghouses and bilateral counterparties.
On 6 April, the Basel Committee on Banking Supervision and the International Organization of Securities Commissions agreed to extended the deadline for completing the two final implementation phases of the margin requirements for non-centrally cleared derivatives by one year.
The deferral was in response to the worldwide market disruption brought on by the coronavirus pandemic.
Under the new timeline, asset managers, pension funds and insurance companies are scheduled to start posting initial margin for non-centrally cleared derivatives under UMR based on their volume thresholds either with phase five in 2021 or phase six 2022.
鈥淲e鈥檝e been looking at technology solutions that can help us to adapt the processes we use for financing and cash management," says Mark Wendland, global head of treasury at DRW. "OpenGamma鈥檚 solution gives us unique coverage for the products we trade, and it will add efficiency to our trading operations.鈥�
OpenGamma CEO Peter Rippon adds: 鈥淲e are incredibly proud to have been selected by DRW, a company with a visionary approach to driving efficiency in their operations.鈥�
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