Elevate Margin Management with Advanced Technology
Case Study Highlights
Enhanced Proactivity and Flexibility
Technology to help firms manage margin proactively, conducting real-time scenario analysis to make better decisions across strategies and business units.
Optimized Capital Allocation
Margin calculators to help portfolio managers evaluate the impact of different strategies in real time, leading to more efficient capital allocation without sacrificing performance.
Improved Risk Management
Customizable scenarios and detailed output management help treasurers balance liquidity and margin requirements, reducing risk exposure and optimizing capital use.
Elevate Margin Management with Advanced Technology
A market use case on how Arcesium’s API-driven margin simulation capabilities can help to optimize margin management and navigate evolving market conditions.
Market Challenge
Today’s financial markets are increasingly difficult to keep up with. Interest rate fluctuations, regulatory scrutiny, and market volatility have made efficient margin management more critical than ever. Yet, margin processes often remain reactive, operating in disparate workflows across the organization on a T+1 basis, which limits firms' ability to respond proactively to risk. Treasury and front-office teams often function in silos, leading to inefficiencies where excess margin erodes front-office profits while treasurers bear the full burden of optimizing capital allocations and collateral inventory across agreements.
Arcesium's Solution
Arcesium’s API-driven margin simulation capabilities provide clients with a powerful and flexible solution for optimizing margin management that they can plug into any department, workflow, strategy, or team. By leveraging API-based simulations, firms can automate margin calculations, run complex scenario analyses, and seamlessly integrate these processes into their existing processes.
Market Benefits
Integrating Arcesium’s margin simulation capabilities into portfolio and order management systems transforms the investment process by embedding real-time risk and capital efficiency insights directly into decision-making. Traditionally, margin considerations have been an afterthought, assessed only after trades are executed, leading to inefficiencies, unexpected capital constraints, and reduced returns. By seamlessly incorporating margin analysis into the investment workflow, firms can proactively evaluate the impact of margin requirements before executing trades, optimizing both strategy and capital deployment.
