Financing and Margining
Newedge offers tailored financing options to qualified customers through one or more of the following products and services:
- innovative, risk-based, portfolio and cross margining across instruments and asset classes
- collateralized loans
- margin financing
- commodity inventory financing
- stock lending
- performance swaps
- margin trading (FX, CFDs)
Newedge offers cross margining for approved asset classes and instruments to help address our qualified clients’ capital requirements. Our internal risk and margin teams also evaluate a customer’s risk portfolio across asset classes for determining appropriate margin and risk parameters. By operating a Value-At-Risk (VaR) methodology using a Monte Carlo simulation, our clients benefit from more efficient use of their capital. We can also gain a better understanding and more accurate assessment of our clients’ risk.
Recent rule changes concerning risk-based margining by the Financial Industry Regulatory Authority (‘FINRA’) has allowed Newedge USA to develop a program for portfolio margining of broad-based index options and corresponding exchange-traded funds.
The FINRA rule changes also made provisions for cross margining of these securities with broad-based futures products, which are currently awaiting approval by the CFTC (Commodity Futures Trading Commission).
Existing clients interested in portfolio margining should contact their Newedge sales representative. New clients interested in this program should contact their appropriate regional sales contact.