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CCP Margin Management: Bimal Kadikar Speaks with Peter Lee from Euromoney

Transcend’s CEO, Bimal Kadikar, recently connected with Peter Lee, Editorial Director of Euromoney. The two discussed some of the critical challenges banks face related to increasing margin demands, especially for CCP margin management. Click here to read Peter Lee’s full article summarizing the discussion on Euromoney.

With market volatility, not only does margin increase, but so does the frequency of margin calls. As a result, banks struggle to manage the increased activity in a scalable and efficient way. Furthermore, CCPs are becoming key players with regulators continuing to encourage OTC derivatives; as a result, firms must balance complying with unique and complex CCP eligibility requirements with posting optimal collateral.

“What is clear is that as volatility rises, not only does required margin climb but so too does the frequency of margin increases.”


As the operational complexity of funding margin requirements grows, technology can help.

Bimal created Transcend in 2013 to help firms increase transparency across businesses with aggregated view of collateral and margin requirements. Earlier this year, Transcend launched CCP Central to help firms aggregate CCP data and automatically pledge optimal collateral. By automating CCP margining, Transcend makes it simple to optimally and efficiently fund cleared derivatives CCPs.

The benefits of leveraging technology to streamline CCP margin management not only helps banks efficiently and scalably meet margin requirements at CCPs, but also creates an opportunity for firms to fold OTC derivatives into a broader optimization strategy.

Click here to learn more about CCP Central.