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April 10, 2024

Cassini: Hedge Funds to Benefit from Enhanced PB Margin Calculations and Stress Testing

CASSINI | LONDON / NEW YORK / SYDNEY ― In a further leap for hedge funds, Cassini today announces enhancements to its platform. As the leading provider of front-to-back margin and collateral analytics and optimization tools for derivatives and prime brokerage (PB) clients, Cassini’s latest advancements considerably expand its capability to replicate PB margin across a diverse array of policy types. Additionally, it is introducing an innovative stress testing feature that fortifies hedge funds against forced liquidation events, thus contributing to the robustness of their risk frameworks.

Historically, only firms with access to complex and costly internal solutions have achieved the level of PB margin calculations and stress testing that Cassini now offers. By expanding coverage across more PBs to include stress-based, Value-at-Risk (VaR), and rule-based models, combined with new stress-testing capabilities, Cassini is democratizing access to critical buy-side treasury and risk solutions. These developments will allow all firms to enhance operational and liquidity risk controls.

Thomas Griffiths, Head of Product at Cassini, emphasized the importance of these additions, stating, “We are continually enhancing our products to prepare the industry for future market events and regulations. This development for hedge funds will enable them to take charge of their margin and collateral costs and ensure liquidity in volatile markets. Transparency into margin and collateral requirements is key; these newly released enhanced analytics allow hedge funds to understand the drivers of their margin, reconcile margin calls, and, importantly, fulfill fiduciary responsibilities to their investors.”

With the landscape of derivatives markets ever-changing and potential market-moving events on the horizon, such as the US presidential election and ongoing tensions in the Middle East, the need for hedge funds to prepare for future market conditions has never been more critical. Cassini’s enhanced solutions offer hedge funds a previously unavailable level of insight and preparedness.