RenCap and Gatelab support Moscow to London cross-margining
Russian broker Renaissance Capital has built a cross-margining tool for the Moscow FX and derivatives markets Micex Selt and Forts, and the London Stock Exchange’s international order book.
Built together with trading systems provider Gatelab – acquired by the LSE last month –the RenCap system is designed to provide a consolidated platform for cross-asset margining of stocks and futures and FX positions in a single account. The LSE’s IOB has been included because many of Russia’s largest companies list there; arbitrage between the IOB and the Moscow Exchange contributes a significant proportion of trading volume on both venues.
“By combining all market access and risk provision through a single solution we reduce support complexity, cost and time to market and at the same time improve reliability and scalability,” said Damian Bunce, chief executive electronic trading group at Renaissance Capital.
At the same time as the cross-margining tool, the company has also introduced a pre-trade risk gateway for FX on Micex Selt and Forts. The aim is to ensure regulatory compliance, particularly concerning the need for brokers to have pre-trade risk controls in place to prevent their buy-side clients from accessing the market erroneously.
Renaissance Capital is one of the larger brokers in Russia, along with Otkritie and BCS. Based in Moscow, it focuses on emerging markets, including Russia and the nearby CIS countries. Gatelab is a specialist software company based in Milan and London that builds brokerage trading platforms. Earlier this month, the firm was acquired by the LSE, which purchased a 67% stake in the company.
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