Variation Margin Manager

Manage your variation margins independently or within our IBOR solution and ensure automatic daily cash flows using our multi-currency variation margin manager module.

The variation margin manager module allows the automatic creation and processing of daily cash in/out transactions as margined securities (e.g. Futures) are "marked to market".

This multi-currency solution saves significant operational effort and delivers precise calculations for all lot-level scenarios by automating variation margin processing. Margins can be posted or not for user review. Impact on historical holdings and lots is seamlessly managed by the IBOR engine. A full audit trail and alert system allows easy activity monitoring and mitigates risk.

Available as a standalone system or as a fully integrated solution with InvestSoft’s IBOR engine.

Automated Solution
Allows the automatic creation and processing of daily cash in/out transactions due to “mark to market” variation margin activity on margined securities (e.g. Futures).

All lot scenarios covered
Variation Margin is calculated at the lot level, with correct calculation of all lot scenarios (e.g. held at the start of the day to the end of that day, acquired during the day, disposed during the day, acquired and disposed during the same day, partial disposition, etc.).

Review process
Variation Margins may be posted and processed automatically, or may be posted for user review and approval before being processed.  A history of Variation Margins is maintained.  Processed Variation Margins may be cancelled and corrected.

Automatic update of holdings and lots through seamless IBOR integration.
Variation Margins, current and historical, are automatically kept in rigorous synchronization with the holdings and lots maintained by the Investment Book of Record (IBOR) engine, through all complex position management scenarios.  For example, if a trade in the past on a margined security is cancelled, all affected historical Variation Margins are cancelled.  Another example, if an as-of Sell trade is entered for the past, and that trade causes a lot that was held for the day to now have been disposed, the required Variation Margin calculation for that lot and day has changed and its Variation Margin is automatically cancelled and reprocessed.

Enhanced Audit and Monitoring functionality
The Variation Margin module is designed for simple and transparent client operation.  The processing is easy to schedule, easy to monitor, and produces human-readable log messages.  A mechanism prevents the posting of duplicate Variation Margins.  It is easy to re-run the processing (e.g. if security prices are corrected) or “catch up” the processing if it wasn’t run for any reason.


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