Aspect Capital expands use of margin analytics from OpenGamma

Systematic investment manager Aspect Capital is expanding its use of OpenGamma’s analytics as it looks to trade new markets.

Hedge fund Aspect Capital has expanded its partnership with margin optimisation specialist OpenGamma and increased its use of the firm’s margin analytics across the markets it trades.

The systematic investment manager, which has been a client and user of OpenGamma’s exchange and broker margin analytics since 2018, said the expanded partnership would support its growth into new markets. 

Aspect Capital referred to hidden challenges around margin requirements when trading new markets, for example, futures and options contracts traded on local country exchanges require a specific approach for calculating derivatives margins for each exchange.

OpenGamma’s margin analytics covering specific methodologies used in each local market will be instrumental in providing Aspect Capital control of risk and liquidity as it looks to expand its product offering.

“As the regulatory landscape for margin evolves and we continue to diversify our product range, OpenGamma’s intuitive platform and expertise in margin replication provide a valuable tool to help optimise cash usage in a high cost, low interest rate environment,” said Jake Thornton, head of market risk at Aspect Capital.

OpenGamma partnered with IHS Markit in May last year to support compliance relating to margin rules for mutual clients.

The deal combined OpenGamma’s pre-trade margin analytics and IHS Markit’s post-trade derivatives calculation service, to provide end-to-end support for a range of entities including investment management firms like Aspect Capital.

“The evolving derivatives landscape has increased the demand for analytics that allow financial institutions to proactively manage margin requirements,” said Peter Rippon, chief executive of OpenGamma. 

“Our expanded partnership with Aspect Capital will broaden the delivery of operational efficiencies for their derivatives trading by tracking the consumption of margin across a wide range of markets and multiple prime brokers.”