Fine margins: Integrating risk and IM costs under new CCP risk models

In today’s regulatory and low-rate environment, liquidity providers are under pressure to develop a clearer view of risk and risk-adjusted profitability across the entire trading and clearing landscape.

This white paper, based on the findings of a survey commissioned by Nasdaq, assesses market participants’ efficiency in managing risk, margin and collateral amid increased volatility, and the transition to new central counterparty risk methodologies. The results provide a unique insight into the preparedness and evolving strategies of liquidity providers and the sell side seeking a competitive advantage in the ‘new normal’