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Eurex Clearing CloudPME – increased margin transparency, no entry barriers, free-of-charge

Release date: 18 Oct 2018 | Eurex Exchange, Eurex Clearing

Eurex Clearing CloudPME – increased margin transparency, no entry barriers, free-of-charge

Just imagine you could use a free-of-charge open access, margin estimation service. Good news is, you can! Eurex now enables clients and prospective clients to calculate their portfolios under the Prisma margin methodology. We spoke to Andreas Franke, Head of Unit, Risk Methodology OTC, about this new service offer.

What made you think of offering a free-of charge margin estimator with open access and no “login” barriers? 

Well, it makes complete sense, doesn’t it. We already provide trading and clearing services to a broad spectrum of clients from global market participants to smaller firms and – indirectly – even individual end users. This way, we help our clients to better understand and simulate initial margin requirements for their existing as well as for hypothetical positions. This helps them to better assess potential impacts already before an order execution takes place. It also generally increases the transparency of our margin model Prisma.

What else is new?

Our Clearing Members and disclosed clients can already benefit from the margin simulation tools we offer as part of our services. But for undisclosed or prospective new clients this was until now not such a straight forward goal to achieve. To establish a free and easy-to-use margin simulation tool with no entry barriers simply was the logical next step. Our new Cloud Prisma Margin Estimator (CPME) can be accessed via any web browser or directly via an API.

Why move it to the cloud, and what are the advantages for us?

The potential user base for CPME is large, that means we need a highly flexible and easily scalable infrastructure to operate it. Designing it as a cloud solution became an obvious choice that also fitted into the overall strategy of Deutsche Börse Group. In addition, the tailored scalability and calculation performance enables use cases for us through which the market reach of CPME is further multiplied via member-owned portals or other vendors in the future.

What is in it for our customers? 

Increased margin transparency with no entry barriers and no costs -- there is no reason why somebody should not want to use the web GUI of CPME right away. The technically more versatile, can also take advantage of connecting to CPME via Python or other programming languages. An example can be found on our website.

Who is the team behind this innovation?

Yes, our CPME is solely based on internally created software and was jointly developed by Tomas Chudy’s IT-team in Prague and Thomas Laux’s team in Eurex Clearing’s risk area.