OTC Derivatives

For OTC derivatives participants, transitioning from a bilateral world to an all electronic execution and clearing world is challenging at the very least - until now. To meet the global regulations, SwapsHub provides an integrated cloud based trading platform built on 3 main principles:

Best Clearing:     optimal clearing path for a portfolio based on IM, credit and collateral

Best Execution:  SEF aggregation, execution using RFQ/CLOB, Swap Terminations, allocations

Best Collateral:   margin call aggregation, collateral pool and management tools 

Pre-trade Features
  • Margin Optimizer: Optimal clearing path IM calculator (x CCPs, y FCMSs=xy clearing paths)
  • Transaction Cost Analysis (TCA): CCP Spread, CCP/FCM Fees, Collateral Funding costs etc
  • Off SEF clearable swaps IM
  • IM for a list of swaps, block allocation etc
  • Clearing certainty (single trade, block and allocation level)
  • Single trade or flexible portfolio level CCP/FCM porting analysis
  • Compliance: Clearing, MAT, Jurisdictions, Fund rules
Trade Execution Features

  • SEF market data and aggregation
  • Derivatives Order Management System (OMS)
  • Full support for RFQ and CLOB
  • Swap Termination handling by creating equal and opposite structures
  • Trade Booking and management for Cleared, Bilateral and Inter-affiliate trades
  • Control and Verification: Trade Workflows, Division of Labor
Post-trade Features
  • Real time portfolio aggregation
  • Ful life cycle management: resets, corporate actions etc
Collateral Management Features
  • Margin Call aggregation: CCP feeds, FCM, Bilateral, Internal
  • Integrated call management for bilateral and cleared calls
  • ISDA best practices based workflows
  • Call verification: independent IM/VM verification
  • Static data management: CSA, clearing agreements, haircuts, collateral accounts, standard settlement instructions (SSI)
  • Mobility/Visibility: Collateral pledges, movement tracking
  • Collateral Optimization using Linear Programming (LP) techniques taking into account of restrictions, concentration limits, rankings etc