Quantile, a leading provider of multilateral optimisation services, has been recognised as the Best OTC Derivatives Margining Solution at the FTF News Technology Innovation Awards 2021. The awards celebrate firms, industry bodies and regulators that have made significant strides in operational excellence during the past year.
Quantile’s initial margin optimisation service reduces counterparty risk and the costs associated with funding initial margin (IM). The multilateral optimisation process helps market participants meet the challenges of the uncleared margin rules (UMR) by analysing their portfolio and proposing a set of new market risk neutral trades that deliver cost reductions without changing net risk positions. By lowering margin costs, Quantile is able to release capital and boost market liquidity – accelerating a safer and more efficient financial system that is better for all.
The Financial Technologies Forum (FTF) recognised Quantile’s initial margin optimisation service as the leader in its field due to the tremendous growth and innovation it has experienced in the last year. 2020 saw Quantile’s client network increase by 37%, with all the G15 dealer banks now live and regularly reducing their initial margin postings by over $10 billion on average.
In addition to significant client growth, Quantile executed its largest runs to date across FX, interest rate and equity asset classes – reducing IM postings by unrivalled amounts. Other 2020 highlights included completing the first cleared optimisation run for interest rates with LCH and increasing the frequency of runs in response to client demand. More recently, Quantile became the first vendor to offer optimisation of eight new cleared currency pairs at LCH ForexClear.
Quantile’s CEO, Andrew Williams, said, “We are immensely proud to be recognised as the Best OTC Derivatives Margining Solution and for the support shown from market participants adopting our optimisation service.”
He continued, “We believe regulations such as the UMRs are here to drive positive change in the industry and we are on a mission to make a long-term impact in the derivatives market. There is immense capacity to help clients manage the challenges arising from new regulations through our multilateral optimisation services, and we will continue to develop the material infrastructure required to navigate these challenges and help the industry reach a healthy steady state.”
Quantile reduces risk in financial markets, delivering advanced strategies that rebalance and reduce counterparty risk between market participants, increasing the efficiency and liquidity of markets, improving returns for clients and making the financial system safer.
Since launching its first products in 2017, Quantile has eliminated trillions of dollars of gross notional of OTC derivatives through compression and billions of dollars in margin through its counterparty risk reduction service.
Clients include all of the G15 top tier global banks, regional banks and other large institutional market participants. Quantile is headquartered in London, with offices in New York and Amsterdam.