TS Imagine: leader in risk and margin management

If the past two years have taught prime brokers anything, it’s that those who have real-time risk and margin management tools at their fingertips have a competitive edge and staying power. Award-winning software platform TS Imagine gives prime brokers the best tools and user experiences to stay on top of their margin game, in a world of volatility, fundraising spikes and Wall Street explosions.

2021 was a wake-up call for prime brokers, broker-dealers and their clients. The collapse of family-owned Archegos Capital Management hit major brokers to the tune of billions and shone a light on the inner workings of the industry. Complacency is out, risk awareness and transparency on margin calculations are in order – especially as volatility rages in the markets, clearinghouses demand more collateral and regulators raise the bar.

TS Imagine in numbers

120+ asset classes covered

60+ Covered exchanges for real-time margin replication

45+ years old accumulated experience in capital markets and SaaS software

13+ years old historical market data feeding the analytics engines, including curves, time series, scenarios and more

8m+ instruments

This new paradigm requires highly sophisticated risk and margin management tools that were historically largely unavailable; in 2021, investment firm Francisco Partners saw an opportunity to address this by bringing together specialist vendors Trading Screen and Imagine Software.

Trading Screen brings over a quarter of a century of experience in trading systems for the capital markets, while Imagine Software has over two decades of running a fully hosted software-as-a-service (SaaS) platform. for portfolio and risk management. TS Imagine was created to be a leading global all-asset SaaS provider that aligns trade, risk, and operations in a transparent, efficient, and scalable way to help businesses thrive in capital markets.

RiskSmart: a powerful new tool for prime brokers

A market veteran and ex-head of equity trading at Deutsche Bank, Andrew Morgan is now president and chief revenue officer at TS Imagine and say: “The perception of bank sponsors, of the power of this product compared to all that exists, is phenomenal.”

TS It was great working with Imagine and we ended up with a system that does everything we were promised. And best of all, due to the flexibility and expandability of the system, our internal THIS and risk departments can now create sophisticated, custom add-ons for the system. It was a real win-win scenario”

Societe Generale

TS Imagine’s RiskSmart was created to fix the weakest link in prime brokers: system fragmentation. The average risk manager will oversee a patchwork of systems to monitor various asset classes – for listed futures and options, interest rate swaps, currencies, credit, potentially new for crypto, etc. . Sound familiar? Over time, this fragmentation becomes cumbersome and inefficient – ​​at worst, it can lead to the costly mistakes and front-page splashes seen in 2021 after Archegos’ demise.

Philippe Lacour, TS To imagine

Philippe Lacour, Global Sales Manager at TS Imagine, says, “On top of that, they’ll have a system trying to do all the analysis, which creates a lag. A risk manager will typically use between three and four intraday systems and one end-of-day system with an eight-hour lag before generating a full picture. »

The fragmentation of the system is a risk in itself and too often prime brokers rely on these Frankenstein solutions which are not suitable for their purpose. TS Imagine’s solution solves this problem by spanning all asset classes, offering real-time analytics, scalability, a cost-effective SaaS model, and an open platform that allows users to design solutions that are perfectly tailored to their needs.

When HTF The research asked 20 banks in 2021 how often they reviewed customer margin, only 15% could do so in real time; the vast majority (65%) revise the margin daily or overnight. But it has reached boiling point. Smart prime brokers must embrace technology that gives them a holistic view of positions and optimizes margin management, or risk being caught off guard when volatility shakes markets.

TS Imagine’s fully hosted SaaS solution brings everything together under one roof – order management, trade execution, portfolio analytics, real-time risk and compliance, margin, accounting and operations – with secure cloud-based delivery. RiskSmart not only displays intraday risk on positions across multiple asset classes, but also flags trouble spots before they escalate, allowing you to identify the source and restore risk to acceptable levels .

Lacour says, “Clients are increasingly sophisticated, trading across regions and assets. The beauty of our system is that we operate 24/7, so we are always active and up-to-date across different regions and time zones. A risk manager can keep an eye on clients at all times. If a fund takes liberties and increases its exposure beyond its risk limits, a risk manager may catch it due to the real-time aspect of the system.

With 600 business and risk side clients, 400 employees in 10 offices around the world – including 74 new full-time hires in 2021 alone – and THIS infrastructure in all major regions, TS Imagine is well served to usher in higher standards in prime brokerage. New customers have adopted TS Imagine’s technology, driving a 21% increase in new business in 2021.

Margin management: five key challenges you need to understand

  • Data dump. Margin calculations are incredibly data intensive and databases need to be able to communicate with each other.
  • Transparency rules. CROs want to know what’s driving margin through the roof – and they want to know now. Tomorrow is not good enough.
  • The workflow can be slow. Margin calculation isn’t always straightforward – it’s often non-linear with multiple potential answers, much like a spider diagram.
  • Report it correctly. Margin calculations should yield actionable insights beyond “here is the profit and loss per customer, here is the margin they need, here is how much we have, here is the surplus/shortfall”.
  • Attribution is the why. Attribution analysis helps stakeholders understand the key drivers of a margin calculation, which is especially important in times of unprecedented margin increases. In the last quarter of 2021, a clearing member of the National Securities Clearing Corporation had to pay the we clearing house $40.7 billion – the biggest cash call since public disclosures began in 2015.

find how TS Imagine’s real-time margin system addresses these challenges by visiting tsimagine.com and speaking to one of its margin experts, or requesting a demo at tsimagine.com/contact

TS Imagine customers rave about the power of its products

Andrew Morgan, TS Imagine

Andre Morgan, TS To imagine

Global Financial Broker EDF&F Man Capital Markets worked with three systems for stress testing, margin and end-of-day risk, as well as reconciling data and workflows between systems. They needed a single platform to better serve remote customers, support business growth, and ease the pain of managing three systems. Now TS Imagine’s platform displays its risk, profit and loss, and margin analyzes side-by-side, while lowering its total cost of ownership in both stock and over-the-counter markets.

Stephen Hood, Global Director of Operations and Risk at EDF&F Man Capital Markets, said: “The excellent work of the two TS imagine and EDF&F The Man Capital Markets teams enabled us to deliver successfully in a short time to integrate, test and commission the new platform in a few months.

As client expectations and market conditions drive clients to demand greater transparency, prime brokers are taking advantage of TS Imagine’s technology to outpace competing incumbents weighed down by legacy software. Hong Kong-based broker Haitong International Securities, which connects Chinese and overseas capital markets, has helped realize its ambitious growth plans by securing a leading position in the Asian market in less than three years.

We have defined sets of risk management frameworks for trading equity derivatives; we want it to be mathematically sound, flexible and scalable. TS Imagine provides robust integration for real-time risk monitoring and scenario analysis”

Haitong International Titles

The reshaping of the hedge fund space is attracting new entrants who can build from the ground up and adapt more easily than some more established players. Mr. Morgan explains: “There is an opportunity to bring together an all-in-one solution for start-up hedge funds in particular. One of the main synergies of the merger is that we can now offer our clients a trading system that also allows them to manage their risks. We already have joint customers, so there is interoperability between systems, and we are developing single sign-on with a consistent look and feel. We are very excited about this area of ​​growth for us.

Digitization and automation are poised to transform the prime brokerage industry as part of a broader trend in financial services, especially as clients increasingly trade across asset classes , geographic areas and time zones. TS Imagine was forged to spearhead this evolution by bringing the benefits of real-time risk and margin management to the industry – and has earned the endorsement of leading market experts. It received the award for the best trading and execution platform in the Hedge week Americas Awards 2021 and Best Risk Management Software in Bobsguide Rankings 2021.

Find out how TS Imagine can help your business manage complex and time-consuming front-, middle- and back-office workflows with our innovative SaaS cloud-based trading, portfolio and risk management software. Visit tsimagine.com to learn more or contact us to request a demo at tsimagine.com/contact