Bloomberg Integrates Margin Calculator for Swap Participants

NEW YORK — To gain transparency and efficiency in today’s
increasingly complex regulatory environment, Bloomberg
Professional service subscribers can now access a derivatives
margin calculator developed by LCH.Clearnet, Bloomberg announced
today.

Bloomberg is the first financial information platform to
integrate LCH.Clearnet’s SwapClear Margin Approximation Risk
Tool (SMART) to help market participants efficiently approximate
the capital funding requirements needed for swaps clearing and
comply with the latest Dodd-Frank mandates.

“Investors can now easily calculate the capital they need to
clear their swap portfolios on the same platform they use for
analytics, trade execution and access to clearing,” said Ben
Macdonald, Bloomberg’s Global Head of Product. “This
collaboration with LCH.Clearnet is another example of our
commitment to providing clients the tools they need to navigate
a growingly complex regulatory environment.”

LCH.Clearnet’s margin calculator is integrated with Bloomberg’s
multi-asset class analytics and trading platforms, making it
easy to anticipate, and therefore manage, how large price
movements and changing market conditions will impact capital
needs. Bloomberg Professional service subscribers can access the
tool to simulate their portfolios’ exposure to risk factors and
perform instantaneous, consistent margin approximations, prior
to clearing, for no additional cost.

“As a result of mandatory clearing requirements, the need for
on-demand margin analysis is critical and accessing a
clearinghouse’s margin calculations on the Bloomberg
Professional service helps me to manage my investment decisions
and operations,” said Matthew Lynes, Portfolio Manager at
Aberdeen Asset Management. “Bloomberg continues to provide the
solutions the industry needs to meet regulatory requirements and
make better informed investment decisions on behalf of our
investors.”

“The integration of SMART into the Bloomberg Professional
service allows market participants to easily run SwapClear’s
market leading risk analytics on their portfolios and
approximate their margin requirements ahead of submitting their
trades for clearing,” said Daniel Maguire, Head of SwapClear
U.S. at LCH.Clearnet. “This collaboration helps participants
understand their risk, optimize their portfolios for greater
margin efficiencies and meet regulatory requirements at a time
of significant change in the global marketplace.”

The Dodd-Frank Wall Street Reform and Consumer Protection Act
requires that interest rate swaps and other derivative products
are traded on a swap execution facility (SEF) and centrally
cleared. To support clients in complying with this regulation
Bloomberg registered and received approval from the Commodity
Futures Trading Commission (CFTC) to operate a multi-asset class
SEF starting October 2nd. More than 200 global institutions are
already using Bloomberg’s clearing channels to clear derivatives
trades with the major clearinghouses, including LCH.Clearnet.

To learn more about Bloomberg’s analytics, trading and clearing
capabilities, click here.

About Bloomberg

Bloomberg, the global business and financial information and
news leader, gives influential decision makers a critical edge
by connecting them to a dynamic network of information, people
and ideas. The company’s strength – delivering data, news and
analytics through innovative technology, quickly and accurately
– is at the core of the Bloomberg Professional service, which
provides real time financial information to more than 315,000
subscribers globally. For more information, visit
www.bloomberg.com.

The Bloomberg Professional service is owned and distributed by
Bloomberg Finance LP.

Media Contacts

US – Sabrina Briefel, +1 212 617 1993, sbriefel@bloomberg.net

EMEA – Natalie Harland, +44 20 3525 8820,
nharland1@bloomberg.net

APAC – Debbie Liew, +65 6212 1166, dliew2@bloomberg.net