SunGard says that their Margin Advisor application for monitoring of cross-asset margins now meets the requirements of the New York Stock Exchange and the Chicago Board of Options Exchange, to give broker-dealers, futures commission merchants (FCMs) and non-clearing members the ability to adopt a risk-based Portfolio Margin methodology starting 2 April.
“Many financial institutions will want to offer portfolio margin treatment in order to provide greater leverage to their clients,” says Gerard Murphy, the president of SunGard’s brokerage and clearance applications business. “While most margin applications provide purely end of day margin calculations, SunGard’s Margin Advisor offers a broader scale of processing using a rules-based approach to define strategy- and risk-based credit policies, thereby helping give the firm greater comfort and control over credit risk. SunGard’s Margin Advisor is already integrated with SunGard’s Phase3 and GMI solutions, which helps firms benefit from event management and workflow capabilities.”