RiskMetrics Group, a provider of risk management and corporate governance services, is to partner with Syncova, a margin management services provider, to deliver a solution for risk based margin management via the Optima platform for hedge funds and prime brokers.
Kaylash Patel, head of institutional business EMEA, RiskMetrics Group, says: “Leveraging RiskMetrics Web Services, Optima platform users will receive seamless delivery of integrated, intraday risk and margin analysis, which will enable them to generate interactive and customisable real-time reports across multiple asset classes.”
Liam Huxley, chief executive of Syncova, adds: “Prime brokers and hedge funds will both benefit from the integration of Optima’s power in fully configurable rule and aggregation functionality, with the best-of-breed risk and stress testing capabilities provided by RiskMetrics Web Services. Prime brokers will benefit from the ability of Optima’s engines to support all margin models and asset types, with the flexibility to respond dynamically to client needs and market events. Hedge fund clients will gain greater control and transparency from enhanced reporting though the replication of counterparty methodologies and seamless integration of analysis and data.”
Key benefits of the integrated solution include: VaR and client-specific stress scenario based margining; what-if-scenarios; combined risk and margin rule based portfolio alerts; and calculation and reconciliation of counterparty margin and financing charges.