Portfolio Optimization

Award-Winning Optimization Solutions

Our suite of optimization solutions is used by the world’s leading financial institutions to manage risks stemming from market and counterparty exposures in their uncleared and cleared derivatives portfolios. With cutting-edge optimization techniques and world-class technology, we deliver tools and methods for our clients to more effectively manage their counterparty exposures and derive meaningful reductions in associated costs.

Current Optimization Challenges

  • Financial institutions have increased their focus on the cost of holding unoptimized positions.

  • These institutions also have limited time and resources, optimizing occasionally with only a few counterparties.

  • The complexity of competing capital and funding requirements spread across a broad network of counterparties makes it difficult for optimization exercises to be impactful.  

  • There’s a lack of user-friendly technology that firms can embed into their infrastructure to quantify compression opportunities and optimize on demand.

Optimization Solutions

What We Do For Our Clients

Capitolis provides opportunities to manage counterparty exposures across various FX, credit and rates workflows. Clients can reduce risk and manage exposures across multiple metrics, including:  

  • Capital requirements, such as RWA or Leverage Ratio requirements under SA-CCR, CEM or proprietary methods

  • Funding of Cleared and Uncleared Margins

  • GSIB surcharges stemming from size or complexity of derivatives portfolios

  • Novations to optimize FX options portfolios

How We Do It
  • Bilateral or Multilateral optimization exercises 
  • Scheduled or on-demand
  • Overlay new trades, novation or “tear-up” of existing trades 
  • Streamlined, simple workflows, spanning 1 or 2 days 
  • Wide network, providing access to both Buy and Sell side market participants
Benefits of Working with Capitolis
  • Leader in bilateral and multilateral optimizations
  • First provider of SA-CCR Optimizations, beginning in 2021
  • Partner who understands the demands and costs of the regulatory environment
  • Technology built on innovative algorithms 
  • Other partnership opportunities to embed Capitolis analytics and optimizations within platforms 

Want to Learn More?

From reducing risk to unlocking capital efficiency, we’re here to help. Fill in your details below and we’ll show you everything our platform and solutions can do for you.