Clearing & Settlement

General
1

Hi,

Does Opengamma play any role in Clearing & Settlement of OTC Derivatives?

2

Hi Pradipta,

OpenGamma’s role in the OTC Derivatives market space is not so much from a clearing and settlement process as such, our ‘Platform for Margining’ is a light-weight solution allowing clients to validate the margin calls from major CCPs for cleared OTC products. Our single API gives access to multi-CCP initial margin and variation margin numbers allowing users to better forecast, understand and optimise their margin calls. Primarily being used by CCP clearing member firms, and sophisticated buy side institutions. As we develop the solution further, areas of consideration include margin attribution, assisting clients to allocate the margin costs back to specific business units or desks for example. We have a number of use cases we are looking at and would welcome any further suggestions.

Thanks
Richard

3

Hi Richard,

Thanks for your reply. I am trying to work on OpenGamma. But before I start it would very helpful if you can clear few of my doubts.

  1. Can any position be created without a portfolio is being registered? I am working on the functional side and also trying to come out with use cases which can add more features.

  2. Does it handle pre-trade risk?

  3. What is the relationship between View and Portfolio? Each View loads different Portfolios but in View definition no Portfolios are selected.

Your reply will be very much appreciated.

Thanks & Regards,
Pradipta Sur

4

Hi Pradipta,

Firstly, it would be helpful to understand your proposed end goal. What is it that you are trying to achieve with the OpenGamma platform? My original reply to you was based upon our margining platform, however my expectation now is that you are wanting to gain market risk functionality? In response to your first question, what pre-trade risk functionality are you looking for? To your second question, a ‘view’ or ‘view definition’ is essentially creating and setting the parameters for the view of risk you wish to see. You are able to have multiple views for any number of different portfolios. Once a portfolio of trades is loaded, then view definitions are like templates that can be applied to each portfolio. Individual positions can be added to/removed from a portfolio manually, or edited in the same manner, alternatively bulk uploading can be achieved via a CSV file or programmatically.

Kind Regards
Richard

5

Hi Richard,

I am trying to analyze all the features and the functionality. I am trying to add some more features and benefits with respect to post trade processing.

Thanks & Regards,
Pradipta