Tradition and LMRKTS deliver initial margin optimisation

The two firms conducted a live run, resulting in the processing of 132 sides of trades within eight minutes, nine seconds

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Working gains: a series of optimisation tests involving 17 banks showed Simm reductions of 32–43%

Interdealer broker Tradition has completed a standard initial margin model (Simm) optimisation for non-deliverable forwards (NDFs) in partnership with LMRKTS, a New York-based fintech start-up offering multilateral foreign exchange compression services. The two firms signed a strategic partnership in 2016, to handle execution and compression for G10 FX forwards. Over the past few months, a series of optimisation tests involving 17 banks showed Simm reductions of 32–43%. Earlier this month,