Preparing for Margin Call Mania In Cleared Swaps – Wall Street & Technology
Ivy interviews Craig the CEO at AcadiaSoft, and points out that moving to daily margin calls on ISDA CSAs is itself an operational demand on buy-side firms compared to weekly or monthly calls.
Once the buy-side embraces clearing, not only will they face a daily margin call, but potentially multiple intraday calls too. Of course the role of an FCM or Clearing Broker is meant to intermediate this process and potentially (at a cost) eliminate intraday calls for the buy-side by taking some risk on posting additional margin to the CCP.
The gist of the article is that the MarginSphere hub, enables electronic communication on margin calls, rather than email, fax or phone.