What is Cube PreTrade
Cube Pre-Trade is a standalone software application for calculating the margin requirements of listed derivative instruments with the same models used by the Clearing Houses.
Who is it for?
It is for Brokers, investment banks and investment companies that need to calculate the margins on open positions in listed derivatives.It is also for trading platform providers who wish to integrate this method of calculation into their platform.
The project was born in 2002 when an Italian broker asked Stefano Zanchetta for an engine to integrate into his trading platform for the IDEM market, both for pre-trade and post-trade calculations.
Since then, the engine has been integrated with further calculation models for the Eurex market (initially RBM/ERBM model, which later became Prisma) and for the CME market (initially SPAN model, then SPAN 2), extending the engine’s compatibility worldwide.
The project continues by keeping the algorithms updated according to the specifications of the clearing houses and the updates adopted by them.
Cube Finance represents a worldwide excellence in guarantee margins.
Strengths of the service
- Great coverage of worldwide markets with the same native models used by the clearing houses
- Realtime calculation available alongside the traditional end of day
- Pre-trade calculation with proprietary logic for maximum efficiency
- Latest generation technology and installable on any operating system
- Great calculation performance in all calculation types (end of day, realtime, pre-trade)
- Callable from any trading platform
- Used with millions of calculations every year
- Twenty years experience of Cube Finance
Replication of the same models used by the Clearing Houses
CALCULATION OF EOD AND REALTIME MARGINS
Margins are calculated with the same parameters provided at the end of the day by the Clearing Houses or by recalculating the parameters during the intraday. This allows you to adjust to changing market quotes and get closer to the margin call of the next day
POST-TRADE AND PRE-TRADE CALCULATION
Post-trade: the case in which the margins are calculated on the open positions, fed in the intraday by the executions.Pre-trade: where margins are calculated on both open positions and orders placed on the platform before they are executed. Orders that have not yet been executed are evaluated to recognize the worst case execution, i.e. the case that will require the maximum value of margins.
TRACEABILITY OF CALCULATIONS
The application log files allow you to view the result of the margins with the calculation details and the request and response details of the calling application.
Margins can be calculated by indicating a scenario of changes in market prices, to know the margins required following a hypothetical change in market prices