SmartStream Technologies, a recognized leader in financial transaction industry and a transaction lifecycle management (TLM) solutions provider, in a recent press release statement, announced entering a partnership agreement with Numerix, an American limited liability company that specializes in risk analysis software, to meet ISDA’s (International Swaps and Derivatives Association) collateral management obligations.
SmartStream and Numerix, have a referral agreement with each other, to support SmartStream’s end users in complying with ISDA’s margin obligations for non-centrally cleared derivatives. According to Jason Ang, programme manager for TLM Collateral Management, SmartStream, the new partnership agreement with Numerix, will help them leverage its technology expertise to manage complex business requirements in the collateral management space.
And as per Steve O’Hanlon, CEO of Numerix, as initial margin requirements bar new transactions, front-to-back SIMM (standard initial margin model) calculations, including the generation of fast and accurate SIMM sensitivities, are increasingly becoming critical. With this new partnership with SmartStream, Numerix will be able to cater to a greater set of market participants with its SIMM capabilities.
According to SmartStream, to help the Basel Committee on Banking Supervision and the International Organisation of Securities Commissions (BCBS-IOSCO) guidelines for margin requirements relating to OTC derivatives, ISDA came up with a SIMM proposal that can be utilized by market participants to provide transparency in the collateral management space.