Officials at the Technancial Company (TTC), a provider of real-time risk management and trade surveillance tools, say they are “first to market” with offerings that support the new Eurex Clearing Prisma 2.05 real-time margin methodology.
The announcement was made at the 40th Annual Futures Industry Association (FIA) Conference, March 10-13, at the Boca Raton Resort & Club, Boca Raton, Florida.
The Eurex Clearing Prisma methodology will be supported by TTC’s Janus Risk Manager and Janus Margin Engine products, which are positioned to allow clearers to “take advantage of real-time portfolio valuation intraday,” says Mirko Marcadella, global head of business development at TTC in a statement. “The Technancial Company is the first to support Eurex’s Prisma by offering real-time market and clearing risk management to clients now. Most risk systems on the market will not be capable of doing this, because of the impact of Prisma’s sophisticated methodology on intraday portfolio changes,” Marcadella says.
By the end of this year, Eurex’s Risk-Based Margining (RBM) is scheduled to be replaced by the Prisma methodology for calculating and simulating Eurex Clearing margin requirements, officials say.
Prisma offers a portfolio-based margin approach that allows cross margining between products as well as across markets cleared by Eurex Clearing, officials say. This is intended to help reduce the risk profile of portfolios by lower initial margin requirements.
Officials say that the benefits of Prisma are:
- Higher capital efficiencies via more accurate risk netting effects for listed, and between listed and OTC positions
- Greater accuracy through cross-product scenarios that enable a consistent way to account for portfolio correlation and diversification effects;
- A consistent risk and default management process for listed and OTC products;
- And support for a broader range of instruments.
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