SmartStream teams with Numerix for ISDA collateral management
SmartStream Technologies, a transaction lifecycle management (TLM) solutions provider, has partnered with risk technology solutions provider Numerix to meet the International Swaps and Derivatives Association’s (ISDA) collateral management obligations.
SmartStream has a referral agreement in place with Numerix
According to SmartStream, it has a referral agreement in place with Numerix to support its end users in complying with ISDA’s margin requirements for non-centrally cleared derivatives.
Jason Ang, programme manager for TLM Collateral Management, SmartStream, says Numerix’s “expertise will complement our ability to manage complex business requirements in this space”.
Steve O’Hanlon, CEO of Numerix, adds: “As new transactions become subject to initial margin requirements, front-to-back SIMM [standard initial margin model] calculations, including the generation of fast and accurate SIMM sensitivities, have become critical. By partnering with SmartStream we are happy to make Numerix SIMM capabilities available to a greater set of market participants.”
SmartStream explains that to help the Basel Committee on Banking Supervision and the International Organisation of Securities Commissions (BCBS-IOSCO) guidelines for margin requirements relating to OTC derivatives, ISDA has proposed a SIMM to be used by market participants to provide transparency in the collateral management space.
SmartStream adds that TLM Collateral Management’s automated data management solution reduces operational risks associated with collateral management.
For its part, Numerix’s computational abilities make it possible to generate the risk sensitivities required by ISDA SIMM that are used as input into initial margin calculations.
As a result of the partnership, the duo reckons this will reduce counterparty disputes and operational costs for clients dealing in collateral management for OTC derivatives.
