Understanding your portfolio and cleared margin requirements is a key success factor for many firms. Watch our expert panel as they explain why this matters, what you can achieve and hear how tools from OpenGamma open up the possibilities to manage costs in this video series. Topics covered include replicating CCP IM calculations, why a trader or CVA desk needs these tools, how to rebalance exposure across CCPs, reducing costs, and cross-product margining, amongst others. Speakers from Commerzbank, Derivati Consulting, OpenGamma and Eurex Clearing.

The OpenGamma and Eurex Partnership

The calculation of Initial Margin has become centre stage, with mandated clearing, multiple clearing brokers and CCPs, and the economic impact on firms of the coming bilateral margin rules. Eurex Clearing and OpenGamma announced a partnership last year, that has since also been endorsed by Commerzbank as a user of OpenGamma Margin tools.  The series of videos below covers margin from different angles and aims to illustrate the issues facing firms as the entire OTC market becomes margined, whether cleared or not.  We would love to hear your questions that these sessions raise for you, our panel are ready and waiting to hear from you and provide answers in return, use the form at the bottom of the page to make contact.

Brief Introduction

Here's a very brief introduction on why these videos matter.

Speakers

Peter Rippon, COO OpenGamma

Prior to OpenGamma, Peter spent 15 years at SunGard where he was most recently the business head for Front Arena, responsible for P&L, product management and presales for treasury and risk management. Prior to this, Peter served in sales management, presales, and product development roles across SunGard’s trading and risk product lines. Previously, Peter worked in Fixed Income technology for Lehman Brothers.

For more information visit www.opengamma.com

Michael Boroughs, Sales and Relationship Management, Eurex Clearing

Michael recently joined Eurex Clearing to work with the buy-side and help with their clearing needs. Prior to this Michael worked at Calypso on their move into a service based model, and at RBS as a Director of their Prime Services business providing clearing and processing services to customers of RBS.

For more information visit https://www.linkedin.com/in/michael-boroughs-38902031

Nick Chaudhry, Head of OTC Clearing Services

Nicholas Chaudhry is Head of OTC Client Clearing at Commerzbank. In his 17 years' Capital Market experience he has held senior positions in Fixed Income Prime Brokerage and OTC Client Clearing businesses in Europe and Asia. At Commerzbank Nicholas is responsible for developing Derivative Clearing solutions and strengthening the product offering to clients.   Derivative Clearing at Commerzbank  is focussed on delivering tailored solutions to clients looking to address the regulatory requirements that have arisen from EMIR. Derivative Clearing is a core component of the new Market Services' product which is a complete offering for post-trade activites, which the Bank offers to its clients

For more information visit https://www.linkedin.com/in/nick-chaudhry-632a3b17

Jaki Walsh, Managing Director, Derivati Consulting

Derivati Consulting is a specialist consulting firm offering cross asset class expertise in the derivatives market; specifically focusing on the evolving market structure and the challenges relating to the implementation of EMIR / Dodd Frank Regulations. With over 15 years of global experience in derivatives and project management across investment banking, asset management and central clearing, she has the unique benefit of having sell-side, buy-side and service provider experience in the Derivatives market. Jaki can be relied upon to deliver what is promised, will manage expectations and does not believe in staying within a ‘comfort zone’, rather “in getting my hands dirty to get the job done”.

For more information visit http://www.theotcspace.com/jaki-walsh

Byron Baldwin, Senior Vice President, Eurex Clearing

Byron Baldwin is a Senior Vice President, OTC Clearing, Eurex London. Byron has over thirty years experience in exchange traded derivatives and clearing working with hedge funds, central banks and traditional fund management companies. He has written a number of industry publications on derivatives and spoken extensively at conferences globally on OTC Clearing as well as on the use of various derivative products for the Buy Side. Byron studied Monetary Economics at the London School of Economics and Finance for his Masters degree at the University of Leicester Management Centre, Investment Management at the London Business School and in 2012 whilst working for Eurex in New York over the introduction of OTC Clearing in the US, completed an OTC Clearing course at the NYU Law School.

For more information visit http://www.theotcspace.com/profiles/byron-baldwin

Session 1 – Buy-Side Margin Challenges

Focussing on the needs of buy-side firms (any firm who isn't a large dealer, such as Corporates, Asset Managers, Investment Managers or Hedge Funds), in this video our panel answers the questions:

• ​Q1: Why should a buy-side firm replicate CCP initial margin calculations (00:25)
• Q2: What are firms asking OpenGamma regarding initial margin? (01:17)
• Q3: Why is knowing initial margin pre-trade important? (02:01)
• Q4: How are firms optimising margin? (04:34)

Session 2 – Benefits of the OpenGamma Tools

In this video taking the view of the larger sell-side firms, the panel discusses:

• Q5: How would a CVA or Rates desk make use of the OpenGamma tools? (00:24)
• Q6: How would the tools be used in a pre-trade or limits check context? (01:30)
• Q7: What use are the OpenGamma tools for Clients in Clearing? (02:04)
• Q8: How could the tools be used for modelling the future behaviour of a portfolio? (03:53)

Session 3 – Panel Discussion

In this session the whole panel tackles questions including:

•   Q9: How does the buy-side manage the flow of block trades across multiple clearing brokers and CCPs? (00:30)
• Q10: How will these tools provide transparent pricing to the buy-side? (01:57)
• Q11: How does OpenGamma deliver their tools in a low impact way? (04:00)
• Q12: How are firms going to manage cash funding for VM and IM? (05:15)

Session 4 – Discussion of using the OpenGamma tools to Rebalance exposure across CCPs

In this session Byron explains some examples of moving OTC exposure into Eurex Clearing, with illustrative diagrams.

• Q13: How does the PRISMA ETD and OTC Cross-Margin Calculator Work? (00:26)
• Q14: How does PRISMA select trades for cross-margin? (02:15)
• Q15: Moving an entire OTC portfolio, and the IM savings (03:17)
• Q16: Using basis trades to switch the 5 year and 30 year points, and IM savings (04:49)

Get in Touch

If these videos raise questions for you, get in touch using this form and we'll provide answers.