Examine how to reap the margin and capital rewards of a counterparty risk mitigation service from a buy and sell side perspective
In an inflationary environment where central banks have increased interest rates, and funding costs and profitability are being impacted, banks, asset managers, and other firms are looking for ways to optimise their portfolios. They must ensure good returns while managing risks effectively and meeting regulatory requirements.
In the counterparty risk space, this centres around risk-based initial margin, both bilateral (SIMM) and cleared, as well as risk-based regulatory capital measures like SA-CCR and Internal Models (IMM). Being able to understand the counterparty risk optimisation processes which can lead to efficiencies in margin and capital is therefore a valuable proposition for firms, especially as the buyside is increasingly coming into scope for exchange of initial margin.
Our panel of industry experts will establish the key challenges faced within margin and capital optimisation and discuss:
- Active management of margin and capital will benefit buy and sell side firms
- The use of new services to optimise margin and capital
- The key considerations for a buyside firm approaching the requirement to exchange IM
- Managing counterparty risk to improve RWA
- Why multiple aspects must be managed in parallel to reap the benefits of optimisation
- Guillaume Dechambre, Director, XVA Desk, BMO Capital Markets
- Erik Hedin, Business and Product Management, OSTTRA triBalance
- Gemma Hopkins, Director — Sales and Relationship Management, OSTTRA triReduce & OSTTRA triBalance