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Ares is only Taiwan commercial service vendor certified by ISDA SIMM™

Ares International Corp. was recently certified by International Swaps and Derivatives Association (ISDA) to offer commercial services based on Standard Initial Margin Model (SIMM). This ISDA SIMM™ solution will assist financial institutions to easily standardize the calculation of initial margin fit for regulator’s requests.

Ares International Corp. was recently certified by ISDA SIMM™

Frank Lin, the president of Ares, said that according to the announcements of Basel Committee on Banking Supervision (BCBS) and International Organization of Securities Commissions (IOSCO), financial intuitions should phase the calculation of initial margin with Aggregate Average Notional Amounts (AANA). Ares was proud to be the first Taiwan-based licensed vendor by ISDA SIMM™ to offer related commercial services. With the help of ISDA SIMM™ solutions, expectedly, the best investment decision can be made by bank traders and risk managers, the cost of initial margin be decreased, the operation profits be enhanced, and the risk of non-settled positions be reduced.

Zheng-Hui, Chen, the manager of Ares R&D department, mentioned that after global financial crisis of 2008, BCBS and IOSCO started supervision plans of OTC (over the counter) derivatives transactions. One of the important measures is for the above transaction to charge essentially related initial margin and offer a consistent standard calculation of it. This model has taken Delta Risk, Vega Risk, Curvature Risk, Inter-curve Basis and Concentration Risk into consideration, which emphasize class of asset, values of sensitivity, and categories of risk plus correlation between various rick factors. This measure can strengthen the advantages of safe-haven transaction and asset variety under the same class of asset with different risk factors.

To define a clearly standard calculation of initial margin as the final form for the future of data exchange, ISDA proposes that transaction data must follow Common Risk Interchange Format (SIMM™ CRIF). As a ISDA SIMM™ officially-licensed provider, Ares can provide consulting services conforming with CRIF standard to help clients organize and convert transaction data to fit CRIF regulations. Plus, with self-developed Ares Cross Pricing System, the features of this initial margin solution will be more comprehensive.

ACPS and Ares

Ares Cross Pricing System is a financial evaluation system, able to support various structured financial products and derivatives while providing real-time evaluation and trial balance without the requirement to learn how to code. It is an intelligent toolkit assisting the financial industry to make the best decisions when markets are in emergencies.

Ares is the first Taiwan-based software company to be listed on the Taiwan Stock Exchange (TSE) and has provided professional services for information system integration for nearly 40 years. Being a professional manufacturing management information system provider, Ares provided its IT products and services for financial institutions, government agencies, and enterprises. Not only a partner of Society for Worldwide Interbank Financial Telecommunication (SWIFT), and vendor of Oracle EBS, Agile PLM, Cloud ERP, Ares also plays the top player of the Taiwan foreign exchange and core banking solutions.

Anti-money laundering solution Siron® was launched for financial compliance to help flexibly follow regulations with AI technology, which effectively reduces false rates. Self-developed ciMes(Computer Integrated Manufacturing Execution System) is top Manufacturing Execution System (MES) for the LED industry in Taiwan and receives Taiwan Excellence Award and acknowledged by the international research institution Gartner as the only Taiwan vendor. ARES Privacy Protector (ARES PP) repeatedly receives patents in document encryption technology, proving that it can help various industries fit the regulations of Cyber Security Management Act.