MarginBloc

Revolutionising Initial and Variation Margin for the digital age

MarginBloc streamlines and reimagines the cash settlement process for Cleared and Uncleared Initial and Variation Margin to deliver structural cash ratio benefits to the balance sheet, reduce counterparty credit risk (reduce RWA charges), reduce cash management operations cost and risk (CCP)and avoid large exposure risk

Connecting Stakeholders
MarginBloc provides a consistent Solution across the market to streamline the use of new digital settlement asset across Treasures, Operations, CCPs, Calc Agents or bilateral counterparts
Optimising Liquidity
MarginBloc connects Banks to multiple CCP and multiple currency enabling a single source of liquidity for a given settlement pool
Benefits
For Bank Treasury and Derivative Ops
  • Deliver structural cash ratio benefits to the balance sheet, reduce counterparty credit risk (reduce RWA charges), reduce cash management operations cost and risk (CCP), avoid large exposure risk
  • Strategically route obligations to Treasury to minimise cash buffers and consistently connect to new cash equivalent settlement asset
  • Connects Banks to multiple CCP and multiple currency enabling a single source of liquidity for a given settlement pool
  • Providing derivatives counterparties a new set of real-time digital cash products for Initial and Variation Margin obligations
For CCPs
  • Address new digital markets and driving efficiencies for existing products
  • Reduction in systematic risk with funds being earmarked in Central Bank omnibus account
  • No requirement for cash management for CCP, with security of pledged underlying funds held at Central Bank
For Regulators
  • Provide operational resilience and transparency for financial institutions to manage their risk – supporting financial stability and market efficiency
  • Delivers positive structural market change using digital cash assets to redefine the margin process
  • Enables new regulatory perspectives on mitigating systemic risk, increasing transparency and certainty at any one point in time
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