Wipro and Quaternion simplify compliance for financial institutions covered under UMR
Wipro announced a partnership with Standard Initial Margin Model (SIMM) vendor, Quaternion Risk Management. As part of the collaboration, Wipro will offer SIMM-in-a-box to financial institutions covered under Uncleared Margin Rules (UMR).
The offering will allow financial institutions to calculate trade sensitivities, generate CRIF (Common Risk Interchange Format) file and calculate initial margin in-house. The solution simplifies compliance procedures by including back testing, benchmarking and preparing documentation required for regulatory approval.
It also offers independent model validation of a firm’s own internal SIMM solution, AANA (Aggregate Average Notional Amount) calculation, and Initial Margin exchange threshold calculation/simulation.
The partnership aims to provide cost efficiencies and seamless integration with clients’ internal systems, while maintaining full control over sensitive trade information.
Keyur Maniar, Senior Vice President and Global Head, Capital Markets, Wipro Limited said, “The uncleared margin rules offering from Wipro demonstrates our deep understanding of our clients’ business imperatives, and our ability to combine strong industry knowledge with global best-of-breed technology solutions for smart execution.
“SIMM calculation is a complex area with a significant role in regulatory compliance. Our compelling proposition and partnership with Quaternion promises to abstract away these challenges and let our clients focus on their core business.”
SIMM-in-a-box is a “future-proofed” SIMM solution that uses the same high-grade analytics as the world’s largest dealer banks. The solution is built on Quaternion’s ORE XML that has evolved as the market-standard for non-cleared derivatives trade representation.
The partnership also leverages Quaternion’s established quantitative library to determine trade sensitivity for CRIF generation and SIMM calculation.
“Quaternion is delighted to partner with Wipro to help bring SIMM best practices to every corner of the financial services industry,” said Scott Sobolewski, Principal at Quaternion.
“As companies prepare to implement the final phases of the Uncleared Margin Rules, the combination of Quaternion’s deep experience building one of the industry’s most comprehensive derivative pricing libraries and Wipro’s unmatched expertise in IT consulting can alleviate many of the traditional ‘plumbing’ and middleware headaches associated with analytics integration. Clients will achieve quick and cost-efficient benefits from a proven solution to SIMM compliance.”