AvenirCCP

Central Counterparty Clearing Houses

AvenirCCP is a product to assist markets to introduce standards-compliant CCPs for both derivatives and cash products. It also has all the features needed to get rapid approval from regulators and other stakeholders.

AvenirCCP was built from the ground up to meet the needs of both new and established CCPs. It meets established international best practice and the CPMI-IOSCO PFMIs. AvenirCCP supports a very wide range of instrument types — cash equities and bonds, index, bond and stock futures, commodity futures, FX futures, options on futures and single stock options. It can be enhanced with Avenir’s Advanced Risk Management toolkit to meet all requirements for stress testing and back testing.

Trades

Trades are received from an exchange or OTC market via the industry standard FIX interface, or via the native API of the trading platform. They are validated and enriched and novation (whereby the CCP becomes the seller to every buyer and buyer to every seller) occurs instantly. Participants can see trades allocated to various clearing accounts in real time.

Positions

Our system allows for many account types (proprietary, client segregated, client omnibus, Non-clearing member).  Positions can be netted or non-netted, depending on the settings for the account.  The system provides give-up/take-up facilities to move positions between cleaing members.

Risk Management

Avenir provides real time risk management functionality. For each account it calculates:

  • Initial margin is calculated using operator entered margin rates, or rates provided by its internal Value-at-Risk (VaR) calculator
  • Spread margin – inter and intra commodity spread margin is calculated to reduce collateral required for correlated positions
  • Variation margin is calculated in real time and settled daily, based upon daily settlement prices calculated by the system
  • Delivery margin can be applied to physically settled contracts close to delivery
  • Additional margin can be applied on the decision of the risk manager

All margins are calculated in real time and the total margin requirement for each account is provided. This margin requirement is compared to the total collateral held. The system displays this ratio graphically and changes colour and issues alerts when collateral usage becomes too high. If the usage breaks a pre-set level, the system can advise the connected trading system to stop receiving orders for the account in question.

The system also supports position limits and open interest ratio monitoring, again with graphical displays and alerts.

If customers so require, connectivity can be provided to an external margin calculator (such as PC-SPAN).

Collateral

The system has a collateral management system (CMS) that monitors and values the amount of collateral deposited to cover each clearing account. It supports:

  • Cash
  • Bank guarantees (letters of credit)
  • Bonds
  • Equities
  • Foreign exchange
  • Precious metals

If the data feeds are available and configured, the system can value the collateral in real time.

Haircuts can be set for each type of collateral and the net value of collateral calculated. The system can also set and monitor minimum and maximum percentages allowed for each collateral type.

Default Management

Our real-time risk management tools help protect the clearing house by ensuring that no account ever reaches a situation when there is not enough collateral to meet a member default. However, if a member or client defaults, the system supports the risk manager by:

  • Suspending operations on particular or groups of accounts
  • Suspending the CM
  • Real time creation of new accounts
  • Grouping accounts for risk management purposes
  • Transferring positions from defaulting CM to a non-defaulting CM

Settlement

Settlement of cash-settled products is effected using a modified daily settlement price process to create a final settlement price on the last day of trading. For physically settled products, processes can be created depending on the delivery rules of the contract.

Customers

AvenirCCP is deployed at the very successful CCP in Vietnam, the new CCP in Lebanon and at a large South American CCP.

Get in touch

It starts with a conversation. Talk to us today.

London, United Kingdom & Wellington, New Zealand
© 2014-2019 Avenir Technology

News

November 1, 2018

Avenir Technology launches post trade infrastructure for Ast...

Provides software to operate Securities Registry and Central Securities Depository London, November 1st, 2018 – Avenir Technology Limited (avenir-technology.com), a global developer of post-trade Financial Market Infrastructure solutions, has ...more

September 25, 2018

Avenir Technology marks first anniversary of powering Vietna...

Over 10 million contracts processed in first year London, September 25th, 2018 – Avenir Technology Limited (www.avenir-technology.com), a global developer of post-trade Financial Market Infrastructure solutions, has marked the first anniversary ...more

August 11, 2017

Vietnam Derivatives Market goes live

Hanoi, Vietnam, 10 August 2017. Avenir Technology is excited to announce the go-live of the first derivatives market and fully integrated central counterparty (CCP) clearing house in Vietnam. Avenir has delivered a state of the art ...more

July 6, 2017

Midclear selects AvenirClear CCP for Lebanon

Beirut, London, UK, 5 July 2017. Midclear S.A.L., the Custodian and Clearing Center of financial instruments for Lebanon and the Middle East, has selected GMEX Group wholly owned subsidiary, GMEX Technologies, to provide and implement its ...more

May 26, 2016

Warehouse Receipts System goes live

London, Lilongwe 19 May 2016. GMEX Technologies (GMEX TECH), part of the GMEX Group and Avenir Technology Limited (Avenir), the UK based post-trade software firm, today announced phase 2 of the project to implement the warehouse receipt system, ...more

March 16, 2016

Avenir partners with FPT to launch Vietnam’s first derivat...

Delivering innovation in exchange traded derivative contracts to be traded on Hanoi Stock Exchange and centrally cleared by Vietnam Securities Depository GMEX Group has entered into a joint venture agreement with FPT Information System (FPT) ...more

September 16, 2015

Central Asian Stock Exchange to Launch in Partnership with G...

London, UK / Dushanbe, Tajikistan. 16th September 2015 GMEX Group today announced that it has entered into a partnership agreement with the Central Asian Stock Exchange (CASE) based in the Republic of Tajikistan through its GMEX Technologies ...more

January 28, 2015

GMEX Group takes stake in Avenir Technology

London, 28th January 2015 – Global Markets Exchange Group International LLP (GMEX Group) has taken a strategic stake, through its GMEX Technologies Limited (GMEX TECH) subsidiary, in the UK based post-trade software firm Avenir Technology ...more

January 18, 2014

Welcome to Avenir

The future of Financial Market Infrastructure We are a new company with an innovative approach to building post trade systems for the world’s Financial Market Infrastructures (FMIs). Unconstrained by the legacy of existing offerings our ...more