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SmartStream partners with Numerix to meet ISDA collateral management obligations
SmartStream Technologies, the financial Transaction Lifecycle Management (TLM®) solutions provider, today announced its partnership with Numerix, the leading provider of risk technology solutions. SmartStream has a referral agreement in place with Numerix to better support its end users in complying with ISDA’s margin requirements for non-centrally cleared derivatives.
In order to facilitate the BCBS-IOSCO guidelines for margin requirements relating to OTC derivatives, ISDA has proposed a Standard Initial Margin Model (SIMM™) to be used by market participants to provide transparency in the collateral management space.
TLM Collateral Management’s automated data management solution reduces operational risks associated with collateral management. Numerix’s advanced computational abilities make it possible to generate the risk sensitivities required by ISDA SIMM™ that are leveraged as input into initial margin calculations. As a result of the partnership, it will reduce counterparty disputes and operational costs for clients dealing in collateral management for OTC derivatives.
Jason Ang, Program Manager for TLM Collateral Management, SmartStream, states: “SmartStream’s TLM platform is proven to manage credit and operational risk through collateral management, we are delighted to be working alongside Numerix, whose expertise will complement our ability to manage complex business requirements in this space”.
Steve O’Hanlon, CEO of Numerix, states: “As new transactions become subject to initial margin requirements, front-to-back SIMM™ 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”.
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