OPTIMA/Fund
Helping reduce and control margin and funding costs from prime brokers. OPTIMA/Fund is a rules and optimisation engine that calculates, reconciles, attributes to underlying funds/desks and optimises the placement of portfolio assets across Prime Brokers.
Overview
The control and optimisation of margin and funding costs can have a significant effect on performance. OPTIMA/Fund is a best of breed rules and optimisation engine designed specifically to automate these complex tasks.
OPTIMA/Fund’s powerful rules engine and position inventory can also provide a wide range of custom alerts and reporting.
OPTIMA/Fund is a Fund variant of the OPTIMA/Broker product already installed at a number of high volume Prime Brokers supporting multiple margin methodologies and processing millions of positions a day.
OPTIMA/Fund – Key Functional Areas
Reconciliation: With an understanding of the margin charges being applied by prime brokers OPTIMA/Fund provides the facility to check and reconcile these charges to ensure accuracy and reduce the risk of over-charging.
- By modelling all the margin rules and stress models offered by your Prime Brokers, OPTIMA/Fund allows you to reconcile the daily margin reports and explain the causes when calls arise.
- By understanding the breakdown of how the requirement is generated it allows you to refine your capital usage.
Attribution: In multi fund, multi desk environments the assigning of Prime Broker charges to underlying funds or managers is calculated to provide indisputable and accurate attribution of charges/margins.
- OPTIMA/Fund allows you to define any attribution properties and analyse margin and funding costs at any level, for example: Desk, Trader, or Strategy.
- Enquiries include attributed margin trends or historical reports.
Optimisation: Ensuring the OPTIMA/Fund placement of assets across prime brokers can significantly reduce margin or funding costs. OPTIMA/Fund analyses portfolios against the margin rules and funding levels of prime brokers to suggest the OPTIMA/Fund placement of assets.
- The optimisation engine allows you to select different groups of accounts or counterparties to be optimised and generate the position moves required to achieve the best margin or funding costs.
- Optimisation can also be constrained in a variety of ways such as locking certain positions or setting min/max balances, etc.
- Box positions can be highlighted and collapsed.
Alerts: Reducing Operational Risk by capturing exceptions and undesirable events early through the creation of virtually any alerts, traffic lights and threshold checks.
- OPTIMA/Fund enables compliance with any commitments in Prime Broker agreements, for example, minimum balances and concentration levels.
- OPTIMA/Fund enables a range of internal controls by flags such as Over Borrows.