Margin Optimization Workflow

Precision Modeling for Margin Calls

Holding the precise amount of collateral required to cover margin calls reduces fees and maximizes capital available for deployment. Knowing the right amount to hold can be difficult, but not with Everysk.

Everysk’s margin optimization workflow streamlines this process by pulling the margin requirement data from brokers, combining that with risk measurements like VaR and suggesting an optimal amount of cash to keep on margin.

These workflows are built from pre-defined robots that perform specific tasks related to portfolio management and pass data between them to form customized, automated workflows designed to alleviate all operational burdens typical of portfolio management processes.

Comprehensive Review

Margin Optimization Workflow Automation

Everysk’s Margin Optimization Automation Workflow utilizes seven pre-built no-code, low-code robots. Users string these robots together via our drag and drop interface. Keep reading to see the role each plays in maintaining the optimum amount of collateral.

Portfolio Data Integration Robot

The Data Integration Robot combines data from various sources including margin and equity data from brokers, additions and redemption data,net asset value (NAV) from back office systems, and portfolio data from administrators.

Data Parser Robot

Portfolio data is parsed from various formats, stored in Everysk and persisted over time. Separate datastores can be kept to organize data feeds and combine them in the robots as needed. Data includes fund equity, Net Asset Value (NAV), margin requirements, portfolio holdings, additions and redemptions.

Risk Calculation Robot

Portfolio VaR is used as a measure of anticipated PL decline and is computed using a user-defined configuration based on the methodology, look-back, sampling frequency and confidence level that fits the user’s risk profile.

Margin Calculation Robot

Everysk has robots that support a library of expressions for computing standard mathematical operations. By defining the different variables from the various integration robots, VaR can be scaled to a 5 day horizon, combined with the margin data and multiplied by the ratio of fund equity to Net Asset Value to determine the ideal margin level.

Compliance Check Robot

Everysk has flexible compliance robots that can pull in values from other robots and run custom checks based on user defined conditions. In this case, the robot confirms the actual margin account does exceed the optimal amount or fall below the minimum level.

Report Generator Robot

A daily report is generated to summarize all data points that go into the margin calculations, show how close the margin account is to the optimal level and determine if the portfolio manager needs to make an adjustment.