ION Acquires Claus for Margin And Risk Management of OTC Derivatives

ION Markets has acquired Clarus Financial Technology to expand ION’s XTP offering with real-time margin and risk management and monitoring solutions for both cleared and uncleared OTC derivatives.

Clarus is a provider of SaaS analytics, data, and research for global derivatives markets in a time of transformation driven by regulatory change and the adoption of SaaS analytics.

Its SaaS analytics products for real-time margin and risk management of both cleared and uncleared OTC derivatives will now be offered under the ION Markets brand.

The new offering will broaden ION’s XTP offering and complement ION’s JANUS pricing and valuation expertise with Initial Margin for OTC derivatives, as well as delivering new portfolio risk management analytics.

Its data provides transparency into the trading of derivatives, covering Exchanges, Clearing Houses, Execution Venues, and Trade Repositories. It is relied upon by both buy and sell-side participants, brokers, service providers and regulators to analyse, inform, monitor, and act in traded markets.

Clarus is also a provider of weekly market commentary and analysis on global derivatives markets, which is delivered in its blog, with over 20,000 active monthly users.

Hishaam Caramanli, Chief Product Officer at ION Group, said: “The acquisition of Clarus expands ION Markets’ offering within its XTP platform, further automating and simplifying the post-trade derivatives business. This strategic expansion demonstrates ION Markets’ leading position as provider of capital markets management solutions and our ongoing focus on digitising and automating workflows.”

Amir Khwaja, CEO of Clarus Financial Technology, said: “OTC derivatives is a market with regulatory tailwinds driving change and SaaS analytics and data is essential for success. As part of ION Markets, Clarus will be able to best capitalise on this trend, maximising the ability to serve customers while providing complementary services to ION’s XTP, JANUS, and other ION Group offerings.”

Clarus’ functionality also enables firms to comply with the new Uncleared Margin Rules (UMR) regulation for OTC derivatives.

The new UMR regulation has seen Phase 6 coming into effect this month, with 1 September as the deadline for firms to fall in compliance.

CloudMargin has also enhanced its collateral and margin management solution to facilitate clients’ preparedness for the Uncleared Margin Rules (UMR).

The firm has connected to nearly 60 custodians globally for cash, securities and third-party SWIFT settlement, in addition to its long-established SWIFT connectivity to the four major triparty agents.

Clients and their partners are able to leverage the network of custodians out-of-the-box as they can issue instructions automatically, with real-time settlement status consumed back into the platform, allowing firms to maintain tight control of their risk and liquidity as they meet their new margin requirements for non-centrally cleared derivatives.