39. Cassini Systems

cassini systems

Company: Cassini Systems

Founder(s): Liam Huxley

Website: https://cassinisystems.com

Description: Founded in 2014, Cassini Systems offers an industry-leading derivatives margin and collateral analytics platform that provides the buy-side with the only front-to-back margin and cost analysis across the entire lifecycle of a trade.

cassini

 

About Cassini Systems

Founded in 2014, Cassini Systems offers an industry-leading derivatives margin and collateral analytics platform that provides the buy-side with the only front-to-back margin and cost analysis across the entire lifecycle of a trade. Cassini users can calculate any margin on any cleared or uncleared derivatives asset, analyse drivers and movement in margin exposure, reduce Initial Margin (IM) levels, and maximise margin efficiency with the firms’ industry-leading, advanced algorithms. With some traders currently seeing margin increases of up to 500% overnight, the ability to anticipate costs and stay under the set threshold is vital. Margin optimisation means companies can mitigate the risk of non-compliance and save money.

Cassini services have a proven track record of enhancing portfolio returns at every point in the daily business cycle, empowering traders, and portfolio managers with the ability to analyse instantly in the pre-trade stage the all-in, lifetime cost of a transaction. Top-tier hedge funds, asset managers, and Tier 1 banks rely on Cassini for powerful, flexible, automated tools to manage their portfolios of over the counter and exchange-traded derivatives products. Cassini’s analytics are designed to be complementary and easily integrated into existing systems used by end-users. To that end, they have developed partner and revenue share agreements with a range of software vendors from major global firms such as Aladdin by BlackRock and State Street, Charles River Development and Simcorp, to disruptors such as CloudMargin and Vermerg.

This is one of many achievements Cassini has seen over the past year. Notably, they have doubled their headcount to meet the needs of their growing base of clients, which includes 10 large new buy-side clients since August 2021. Among them are BlackRock, the world’s largest asset manager, and other major hedge funds. Additionally, Cassini has developed their Novation Analytics, which enables clients to produce more advanced optimisation algorithms which reduce IM by providing users with a set of trades to move between their agreements. In trials, this reduced one client’s IM by 47%.

Cassini has faced some challenges over the past two years. Due to the pandemic, the industry saw extreme market volatility globally which created a demand for transparency of margin obligation, post-trade costs, and capital efficiency. While the issue of collateral liquidity was also front and centre, firms were having to provide up to €500m of collateral and unwind large proportions of their books to free up cash to meet margin calls.

As this market stress came to the fore, it emphasised the role Cassini’s products could play in addressing these challenges and solving clients’ problems, thus contributing to its growth. The company worked with its clients during these challenging times, helping identify margin-reducing trades, explain margin movements, fully optimise collateral allocation, and identify novation/switch-trade opportunities.

While the industry develops rapidly as we continue to emerge from the pandemic, Cassini aims to work with its clients to provide innovative technologies that facilitate the maximisation of margins.

 

fintech50

Would you like to sponsor one of our top lists? Contact us here for more information >>