The Basel & IOSCO committees’ final text on margin requirements for non-centrally cleared derivatives, BCBS 317, mandates the posting of Initial Margin between bilateral OTC counterparties. With a 6 phase-in period over 7 years (covid) through to 2022, the largest banks started exchanging Initial Margin in September 2016.
Complete out-of-the-box solution
MX.3 provides a comprehensive pre-packaged solution for Bilateral Initial Margin for easy and timely deployment. Uniquely, MX.3 can generate the risk sensitivities for all non-cleared OTC derivatives, which can be combined with externally-fed risk sensitivities for some asset classes, if required. These are mapped to the appropriate SIMM™ buckets for eligible trades and products, as per the collateral agreement data. MX.3 calculates SIMM™ and generates CRIF files, which can be shared with third parties via the Acadia connector and/or directly generate IM margin calls within MX.3. Traders and Sales benefit from assistance tool to lower margin costs helping them to identify the cheapest counterparty to trade with.
Smooth regulatory approval pathway
MX.3 for Bilateral Initial Margin eases the regulatory approval pathway with comprehensive support for back-testing Initial Margin calculations.
If you wish to learn more about our Bilateral Initial Margin solution, please download the flyer here.