Initial margin threshold monitoring

Are you in scope for the IM rules and need to monitor your IM exposure?

For firms who expect that their IM exposure will take time to build up, or who perhaps anticipate that IM exposure will always remain low due to products traded or size of the portfolio, TriOptima’s suite of IM solutions make it simple to calculate and monitor IM – providing full transparency into your IM exposure.

In addition to delaying phase 5 and 6 IM compliance dates, regulators have also provided additional relief that states in-scope firms are not required to complete legal documentation and custodian arrangements until they breach the 50 million threshold with each of their counterparties. Thus firms are required to only monitor IM exposure, potentially opening the door to a lighter path to IM compliance. 

Active monitoring of your IM exposure versus an internal tolerance amount will help you to identify when, if at all, you need to prioritise CSA documentation and custody account setup.

A flexible solution for every need

We understand that there is no ‘one size fits all’ which is why TriOptima offers a flexible IM threshold monitoring solution – choose the option that suits your firm’s requirements; easily moving from one method to another as your business needs change

1a. FREE triResolve report for all subscribers

  • Uses the trades you upload today in triResolve
  • triResolve calculates IM exposure for in-scope trades via Schedule/Grid
  • Monitor IM exposure via triResolve report

1b. Monitor IM exposure using Counterparty IM

  • Leverage your counterparty to provide IM Exposure calculation (SIMM/schedule)
  • Receive counterparty IM in triResolve Margin via AcadiaSoft’s IMTM or IMEM
  • Receive notification when IM exposure exceeds tolerance in triResolve Margin

2a. Calculate own IM exposure

  • Load trades to triCalculate
  • triCalculate calculates IM exposure for in-scope trades using SIMM or Schedule
  • Monitor IM exposure via triCalculate report

 2b. Monitor IM exposure using own or counterparty valuation

  • Load trades to triCalculate
  • triCalculate calculates IM exposure for in-scope trades using SIMM or Schedule
  • Receive counterparty IM in triResolve Margin via AcadiaSoft’s IMTM or IMEM
  • Receive notification when IM exposure (own or CP) exceeds tolerance in triResolve Margin

Regardless of how you calculate IM, once an internal tolerance is breached, and assuming an IM CSA is then signed, you can easily switch from IM monitoring to IM margining with your counterparty.

Key Features

 

Flexible options to calculate, validate and monitor your IM exposure

Fully automated IM monitoring workflow reduces operational burden and allows you to save valuable resources

Monitor both your own and counterparty IM exposure

Everything you need upon threshold breach at no extra cost (automated call exchange, securities collateral pledge/accept)

Pay as you go pricing. Fees are charged only in respect of in-scope IM trades and agreements

All ongoing support, maintenance and upgrades included

For more information, please email info@trioptima.com or contact us via the form below.