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HomeInstitutional FXCassini wins award for accomplishments on margin analytics amid liquidity risks
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Cassini wins award for accomplishments on margin analytics amid liquidity risks

Cassini Systems has won the Best Analytics Solution category in this year’s WatersTechnology Asia awards as the margin analytics and collateral optimization platform continues to add new features.

The platform, which runs intelligent analytics in near real-time, informs companies’ strategies and has historically helped clients save hundreds of millions in initial margin. Its comprehensive framework for liquidity risk helps companies achieve resilience and revenue generation.

The firm has recently launched in-depth stress testing for clients which can make the difference between seeing profits and an unsuccessful strategy. Cassini has set up an office in Singapore to better serve Asian markets.

Higher cost of derivatives and margin amid volatility-driven liquidity risk

The importance of quality margin analytics and collateral optimization solutions has grown significantly in recent times amid the increased volatility and market instability experienced across the globe.

These have driven liquidity risk to extremes, resulting in many companies seeing the cost of derivatives and margin exponentially increase and, in extreme cases, defaulting on their positions.

In May this year, BCBS-CPMI-IOSCO published its report on margin impact on CCPs (centrally cleared commodities), finding that these are sensitive to the impact on margin calls, with some companies adjusting their stress testing approach accordingly.

Cassini for margin analytics, collateral optimization, stress testing

The front-to-back margin analysis solution for derivative users offers clients an analytical liquidity and collateral risk management framework that goes beyond the one set out by regulators, meaning companies can use the firm’s margin analytics, collateral optimization, and stress testing capabilities to ensure collateral and liquidity resilience for any market scenario.

Once this framework is in place, buy-side firms can start exploring opportunities to optimize revenue with intelligent analytics by maximizing the revenue opportunity from unencumbered inventory and project short, medium, and long-term pools of inventory deployment.

David Liew, Head of APAC Sales and Operations of Cassini Systems, said: “We are very pleased to be recognized for our contribution to the derivatives markets. This award cements our commitment to the industry and serves as further proof of the importance of our analytics. As part of our offering, firms are now also using in-depth stress testing which can be the difference between seeing profits and continuing with an unsuccessful strategy. With our newest office in Singapore, we are well positioned to continue serving the Asian markets.”

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