Proprietary trading firm DRW has implemented analytics from OpenGamma for its treasury trading activities to manage derivatives margin.
DRW will use OpenGamma’s software-as-a-service (SaaS) analytics to expand its treasury trading capabilities in response to regulations such as the uncleared margin rules, which require firms using over the counter derivatives to post margin on those transactions.
OpenGamma said the tool will allow DRW to improve its treasury processes with regular evaluation of alternative ways to put on new trades across clearing houses and bilateral counterparties.
“We’ve 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’s solution gives us unique coverage for the products we trade, and it will add efficiency to our trading operations.”
DRW is the latest major institution to sign up to OpenGamma’s analytics service to manage the upcoming uncleared margin rules. In December, fixed income investment firm Pimco adopted the tool to optimise its derivatives margin processes.
The industry was handed a one-year delay for the final two implementation phases of the uncleared margin rules due to the ongoing disruptions related to the coronavirus pandemic.
The Basel Committee and International Organisation of Securities Commissions confirmed late last week that the final phase will now take place on 2 September 2022, at which point thousands of buy-side firms with derivatives of a notional value exceeding €8 billion will have to comply with the rules. At the same time, firms with derivatives of a notional value exceeding €50 billion will also see a one-year delay, and be subject to the requirements from 1 September 2021.