The Need For Real-Time Margin Management
Traditionally, margin trading was a niche business offered by private banks to their High Net Worth clients who traded FX in a style similar to trading Equities, and typically margined at relatively high levels.
The growth in margin trading has created the need for solutions that can deliver the trading functionality, risk management and monitoring capabilities that is required for this burgeoning business.
Let's look at the area of risk management as an example. As the level of sophistication in margin trading grows, the risk management requirement has also grown. Risk management requires the constant monitoring of client portfolios and ensures that the margining rules agreed upon are supported by the solution the bank has in place. Many banks only offer collateral agreements based on ISDA support agreements, and need a solution to define, manage and monitor these agreements, while also monitoring the clients' portfolios.
Collateralized FX trading has seen significant growth and change, including the introduction of new categories of clients, additional product offerings, and the continual need to margin these complex portfolios.
MarginMan is the industry standard solution for collateralized foreign exchange (FX) trading, precious metals trading and over-the-counter (OTC) FX options trading. MarginMan has been developed and enhanced over several years, in conjunction with the client base, including many of the global leading players in this marketplace.