DRW is set to adopt OpenGamma’s analytics in its treasury function in response to regulations such as the Uncleared Margin Rules (UMR).
As part of the new partnership, DRW will use OpenGamma’s analytics in its treasury function to manage derivatives margin.
Regulations like UMR require any trading strategy that uses leverage to optimise and be efficient with its use of collateral, OpenGamma explained.
According to OpenGamma, its solution will enable DRW to improve treasury processes by regularly evaluating alternative ways to put on new trades across both clearinghouses and bilateral counterparties.
On 06 April, the Basel Committee on Banking Supervision and the International Organization of Securities Commissions agreed to extend the deadline extend the deadline for completing the two final implementation phases of the margin requirements for non-centrally cleared derivatives by one year.
The deferral was in response to the worldwide market disruption brought on by the coronavirus pandemic.
Asset managers, pension funds and insurance companies are scheduled to start posting initial margin for non-centrally cleared derivatives under UMR based on their volume thresholds either with phase 5 or phase 6.
Mark Wendland, global head of treasury at DRW, said: “We’ve been looking at technology solutions that can help us to adapt the processes we use for financing and cash management. OpenGamma’s solution gives us unique coverage for the products we trade, and it will add efficiency to our trading operations.”
OpenGamma CEO Peter Rippon added: “We are incredibly proud to have been selected by DRW, a company with a visionary approach to driving efficiency in their operations.”
