Quantile
08/02/2023

Reducing Counterparty Risk, Initial Margin and Capital Requirements for Canadian Market Participants

 

We’re pleased to share that the first Canadian bank has joined our counterparty risk optimisation service to reduce the cost of funding initial margin and improve capital efficiency.

Our optimisation network already includes the world’s largest dealer banks, regional banks and buy-side firms – who benefit from record-breaking margin reduction often in excess of 50%.

The bank’s participation is the first step in enabling us to reduce initial margin and capital requirements for Canadian market participants. We see significant optimisation potential across the largest Canadian banks and the service has a network effect – so results improve as more participants join.

Our service reduces cleared and uncleared initial margin and capital requirements under SA-CCR in one run, on one day. The service runs weekly for FX, fortnightly for interest rates and monthly for equities.

Jon Skinner, Head of North America at Quantile, commented, “We are very pleased to welcome our first Canadian bank to the network and thank them for pioneering Quantile’s counterparty risk optimisation service in Canada. Our data shows a clear “better together” effect – so there will be a significant boost in results when more Canadian banks join the network. We hope to welcome additional Canadian participants soon so we can further reduce risk and funding requirements for all.”

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