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Enterprise-wide Collateral and Margin Management
| Benefits |
Anvil Margin helps banks and financial organizations manage their margin --
covering global trading exposure and resultant collateral.
It covers a wide range of products including: swaps, options, FX,
equities, futures, bonds, repo and money markets.
In recent years, some banks are engaging in programs of work to move towards
Enterprise
Wide Margin/Collateral Management.
However, most still adopt a 'silo' approach, where margin is monitored
and managed separately at desk level - often using different systems for
different products.
Anvil Margin can be taken as a strategic solution to cover margin
management across the enterprise, and around the world, in real-time.
It
can also be used simply to manage margin for one product area - such as FX -
and then expanded to other areas as required.
Anvil Margin can calculate
your exposures, monitor collateral already pledged, and help find
appropriate additional collateral from your available long positions. With
Anvil Margin, you'll make the most efficient use of your collateral,
remaining in control at all times. |
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| Functions |
Modeling of legal agreements and documentation which allow trades to
be netted for the purposes of margin. This includes all the current key
international documentation such as ISDA, ISMA, IFEMA and OSLA, as well
as the ability to set up custom bilateral agreements with different
counterparties.
Real time monitoring and display of mark-to-market exposure (variation
margin) for today and going out into the future. As new deals are
entered they are automatically netted within the correct legal agreement
bucket to provide accurate portfolio variation margin. A number of
levels of drill-down from the exposure monitor screen are provided to
see how margin figures are derived - right down to trade level. The
monitor also shows available headroom against limits which are entered
into the system, taking into account any collateral which is booked to
mitigate exposure.
The ability, if required, to book margin calls of cash or securities. Margin calls are defaulted to take into account details such as minimum
transfer amounts, rounding rules and eligible collateral. If desired,
organisation can also load collateral position information into Anvil
margin and use the system to intelligently search those positions for
the best collateral to use in a margin call - again taking into account
factors such as eligible collateral constraints and rehypothecation
rights.
Anvil Margin has an open interface, allowing real-time trade information from your other front-office systems to feed into the margin view. Equally margin calls can be fed back out to other systems for automated capture. On the other hand, if an organization wants to tool up for starting a new line of margin business, Anvil Margin can be coupled with other modules from Anvil's front office infrastructure - Denarius - to provide trade capture, position management and reporting functionality.
Cross-product netting - If organizations do cross-product netting at all, it's usually on the basis of customized bilateral agreements. Anvil Margin can support these and the system will cater for more formal cross-product agreements when they come along. Meanwhile, with Anvil Margin, you can at least move towards seeing all your different product margins on the same system - even if they are not netted together. And, being a global system, Anvil Margin fully supports global operations, so you can combine margins across different subsidiaries should you wish.
Anvil Margin allows new models for measuring values to be quickly developed and 'plugged in' according to different customer requirements. For example, you may choose to bucket trades using security characteristics such as ratings, term to maturity or issuer and then track volatility measures in order to give a real-time indication of initial margin. This may be of interest for measuring or reconciling against clearing house margins, for example. This could be added as a secondary view, alongside the more typical variation margin view.
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| Links |
Click here to view our current Anvil Margin brochure (PDF format).
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