SimCorp, a leading provider of investment management solutions and services for the global financial services industry, and Cassini Systems, a provider of pre-trade analytics solutions for OTC trading, today announced a partnership to offer SimCorp clients access to Cassini’s analytics solution through SimCorp’s flagship platform, SimCorp Dimension. The partnership will help firms that use derivatives to improve their assessment of the total cost of trade to make more informed investment decisions.
The evolving regulatory landscape, including regulations such as Dodd-Frank, EMIR and MiFID II, has significantly altered the operational environment for investment management firms. Central clearing obligations and increased margin requirements for non-centrally cleared derivatives require firms to demonstrate that they have a holistic view of their risk, collateral, and potential costs when making trading decisions.
Firms opting for the Cassini solution integrated with SimCorp Dimension will be able to calculate initial margin for derivatives contracts pre- or post-trade. The partnership will also enable clients to carry out hypothetical simulations to assess total transaction costs including fees and initial margin for each clearing broker or clearing house, allowing the portfolio manager to choose the most cost-effective option.
Commenting on the partnership, James Carter, Director, Product Management, at SimCorp said: “Improving the front office functionality of SimCorp Dimension continues to be a key focus. We want to support asset managers in generating alpha, and by making the initial margin requirements visible to them ahead of the trade we enable them to make more informed investment decisions. We are pleased to be partnering with Cassini Systems in order to do this.”
Adding to this Liam Huxley, founder of Cassini Systems, said: “At Cassini we have developed a platform to truly bring the back office into the front office, by enabling post trade factors such as margin, collateral, fees, and operational limits to be fully integrated into the trading decision process. Our offering perfectly complements SimCorp Dimension which provides a seamless solution from order management through to position and collateral management.”
The Cassini solution is available for SimCorp Dimension users now in all current production versions of the system.
SimCorp provides integrated, best-in-class investment management solutions to the world’s leading asset managers, fund managers, asset servicers, pension and insurance funds, wealth managers and sovereign wealth funds. Whether deployed on premise or as an ASP solution, its core system, SimCorp Dimension, supports the entire investment value chain and range of instruments, all based on a market-leading IBOR. SimCorp invests more than 20% of its annual revenue in R&D, helping clients develop their business and stay ahead of ever-changing industry demands. Listed on NASDAQ Copenhagen, SimCorp is a global company, regionally covering all of Europe, North America, and Asia Pacific.
Cassini Systems is a financial technology company founded by the previous CEO of Syncova Solutions with a team based in New York and London. Cassini delivers a pre-trade analytics platform for OTC trading combining risk, limits, fees, margin and collateral. Users can access What if trade testing, Best Execution and Best Hedge recommendation alongside Regulatory and Operational Limits Monitoring. Cassini’s vision is to provide a holistic platform that transforms the pre-trade experience for the front office while still allowing traders the flexibility they need.