Transcend, a provider of analytics, optimisation, and automation for collateral, liquidity, and funding, continues to enhance its CCP Central solution by expanding its network of direct CCP connectivity and margin optimisation.
CCP Central, which streamlines margin and collateral management activities with a single CCP or across a global network of CCPs, now offers connectivity to the Options Clearing Corporation (OCC). In addition to automating the process of posting collateral as margin to the OCC, Transcend can now help its clients more efficiently meet margin requirements through advanced optimisation capabilities.
“The OCC margin methodology is unique in that collateral pledged by members is assessed against their clearing positions,” says Patrick Tessier, Derivatives Product Manager at Transcend. “As a result, the collateral selected has the potential to increase or decrease a member’s overall risk and therefore margins. Nevertheless, most firms lack the technology to optimally select and pledge the collateral to reduce their margin requirement. CCP Central is changing this narrative, enabling customers to seamlessly pledge the most optimal collateral.”
Transcend’s connectivity and optimisation capabilities empower firms to systematically identify and execute the securities movements that satisfy the lowest customer margin requirement. Ultimately, this helps firms reserve scarce collateral resources and improve liquidity while driving enhanced operational efficiency.
“Margin optimisation has become a critical component of the CCP business model,” says Bimal Kadikar, CEO of Transcend. “With CCP Central’s powerful optimisation capabilities, we are delivering both operational and financial leverage to our clients, resulting in millions of dollars in annualised savings.”
Transcend is investing heavily in people, research and development to build the industry’s most innovative collateral and inventory solutions. CCP Central launched in May 2021 as the industry’s first platform to deliver connectivity and enterprise-wide margin and collateral management to standalone CCPs or across a global network of CCPs.