New CCP system promises efficient collateral management
06 June 2017 Stockholm
Image: Shutterstock
Trading and clearing technology provider Cinnober has launched a risk management system for central counterparties (CCPs).
Cinnober鈥檚 TRADExpress CCP Risk offers a single point of access, enabling efficient risk and collateral management across all asset classes and instruments cleared by the CCP.
The first customer to implement the system is Japan Exchange Group, which plans to go live during 2018 with its new risk solution across the entire Japanese market of equities, bonds, futures, options, credit default swaps and interest rate swaps.
According to Cinnober, TRADExpress CCP Risk enables CCPs to run multiple risk models in parallel, allowing them to 鈥渕igrate from old models to new, more sophisticated statistical approaches better fit for today鈥檚 versatile array of cleared contracts鈥�.
鈥淐CPs need to avoid overburdening market participants with excessive margin requirements without becoming a systemic risk to the financial industry,鈥� said Mikael 脰hman, chief architect risk solutions at Cinnober.
鈥淔or this, new methods and procedures that give a full view across all asset classes and instrument types are required, and that鈥檚 what we鈥檙e introducing with TRADExpress CCP Risk.鈥�
Cinnober鈥檚 TRADExpress CCP Risk offers a single point of access, enabling efficient risk and collateral management across all asset classes and instruments cleared by the CCP.
The first customer to implement the system is Japan Exchange Group, which plans to go live during 2018 with its new risk solution across the entire Japanese market of equities, bonds, futures, options, credit default swaps and interest rate swaps.
According to Cinnober, TRADExpress CCP Risk enables CCPs to run multiple risk models in parallel, allowing them to 鈥渕igrate from old models to new, more sophisticated statistical approaches better fit for today鈥檚 versatile array of cleared contracts鈥�.
鈥淐CPs need to avoid overburdening market participants with excessive margin requirements without becoming a systemic risk to the financial industry,鈥� said Mikael 脰hman, chief architect risk solutions at Cinnober.
鈥淔or this, new methods and procedures that give a full view across all asset classes and instrument types are required, and that鈥檚 what we鈥檙e introducing with TRADExpress CCP Risk.鈥�
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