FNX believes that the globalization of the financial markets poses new challenges for collateralized trading operations, especially in the area of technology. Most margin systems on the market today have grown in functionality to meet the requirements of individual desks, but few have succeeded in providing a true, real-time, high volume global solution. Sierra Margin provides all the tools necessary to make the most of an institution’s global collateral program.
Sierra Margin’s enhanced exotic options product coverage includes Average Rate Options, Digitals, Dual Digitals, Dual Barrier and Window Options. Sierra Margin functionality includes the acceptance of multiple collateral types and the ability to define haircuts based on instrument and currency. Color-coded, real-time screens notify traders and risk managers of margin call or margin cut situations and allow them to track information up to the transaction level. Sierra Margin is part of FNX’s Sierra family of products that has been developed on a flexible and modular architecture. Sierra Margin users can also license products such as Sierra Limits to manage their credit, market, and operational risk. Additionally, clients can license FirstOrder, a Web-enabled order management engine that handles both telephone and Internet orders. FirstOrder can be used to provide clients with a white-labeled, user-friendly portal to place orders and monitor their own margin and collateral status via the Web.
Paul Gibson, FNX’s Managing Director, EMEA comments: "Over the last year we have seen a heightened, international interest in collateralized trading. As a proven leader in global, high volume solutions, we saw an opportunity to launch a specialized collateral trading module based on Sierra System’s powerful technology platform and our undisputed success in bringing clients dependable, global, cross product solutions. By implementing Sierra’s collateral trading capabilities at multiple client sites, the integrated solution offers a proven, highly flexible collateralized trading product."
Gibson continues, "Global buy- and sell-side market players are recognizing the powerful advantages of using collateralized trading as a part of their risk management activities. As collateralized trading expands to include new product groups, Sierra Margin, as an integrated part of Sierra System, will be well positioned to handle the global challenges associated with cross- product collateralized trading."