Single currency, limited maturity swap strategy.
A basic inverse-profile close-out compared with a Level 1 close-out optimisation process. Indicative only — results demonstrate that meaningful cost reductions can be achieved through enhancement of optimisation processes alone.
This analysis demonstrates basic operational optimisation applied to a simple single-currency executed trade set. Results represent potential savings from application of conventional techniques only.
Real-world portfolios with greater complexity, currency diversity, multiple clearing broker relationships, and longer maturity profiles typically reveal substantially greater optimisation opportunities.
- Notional
- €21.7bn
- Trade lines
- 116
- Maturities
- 3 (2Y / 5Y / 10Y)
- Currency
- EUR
- Cycle
- 6 week entry / exit
- Clearing broker
- FCM
- CCP
- LCH High Volume B1 ($27.50)
- Processing
- LCH High Volume P1 ($25)
- Broker per ticket
- $200
- Hold period
- 30 calendar days
- Margin costs
- N/A
Identical economic exposure. Materially different cost.
Entry / registration. Broker and CCP fees on all trades.
Exit / settlement. Offset costs depend on structure.
This is not final savings.
The 40% saving represents an extreme Level 1 scenario in which a portfolio has not been actively optimised for cost efficiency. Most organisations will already have some level of inventory management discipline in place — however substantial opportunities frequently remain.
Data quality
Clean, compressed portfolios improve settlement efficiency, reduce operational risk and simplify ongoing inventory management.
Expert actionable results
Detailed results in the format that best suits your teams. Reduce the burden of monitoring inventory and identifying close-out opportunities.
Front office capacity
Close-out preparation packaged for review and execution, freeing skilled personnel for primary responsibilities.
Industry best practice
Proven inventory management techniques and specialist expertise drawn from established market practices.