NEX TriOptima unveils initial margin compliance tool

New tool will allow firms to calculate initial margin amounts, manage margin calls and resolve disputes, as thousands of buy-side firms are expected to come in-scope next year.

NEX Group’s post-trade derivatives technology provider TriOptima has launched a new service to help market participants meet initial margin requirements.  

The service will provide an end-to-end solution to calculate initial margin amounts, manage margin calls and resolve disputes, after TriOptima combined all of its services so that clients can use a single trade file to comply with the rules.

Thousands of buy-side participants and regional banks are expected to come in-scope of the rules in 2019/2020 once the notional threshold for the mandatory exchange of initial margin is reduced.

“We’ve simplified what can be a laborious process,” said Raf Pritchard, co-CEO of TriOptima and CEO of triResolve. “With one simple trade file, we enable market participants to meet the demands of the new non-cleared margin regulation in a simple and cost-effective manner.

“Our work with phase one and two firms has given us tremendous experience and insight into the complexities of initial margin, so we are best placed to help firms that will come in-scope in 2019/20 to overcome the challenges.”

NEX Group has offered market participants various services to meet phase one and two of the initial margin rules. Clients can use triCalculate to calculate their inputs for the standard initial margin model, and triResolve Margin to capture initial margin amounts and achieve an exception-based margin call process.  

“NEX TriOptima has helped us cope with the IM requirements in a very efficient and manageable way,” Nordea Asset Management added in a statement.

“The solution provides an easy to use workflow and allows us to operate high levels of STP with its out-of-the-box integration with both MarginSphere and AcadiaSoft’s Initial Margin Exposure Manager. Together with initial margin sensitivity calculations generated by triCalculate, the integrated services provide a perfect overview via a single GUI.”

The International Swaps and Derivatives Association (ISDA) has warned firms that are in-scope for September this year to act now to avid missing the deadline, with data suggesting that they could face more than 1,000 newly in-scope counterparties and 9,000 new relationships in this final phase.