Openlink Releases Speculative Position Limits Monitoring For Dodd-Frank Compliance

Press Release

Openlink Releases Speculative Position Limits Monitoring For Dodd-Frank Compliance

CFTC regulatory reporting and real-time position limit monitoring

New York – May 21, 2012 – Openlink Financial LLC (Openlink), a leading provider of cross-asset trading, risk management and operations processing software solutions, announced today the launch of its Speculative Position Limits Monitoring functionality for compliance with U.S. Commodity Futures Trading Commission (CFTC) regulations resulting from the Dodd Frank Wall Street Reform and Consumer Protection Act. Openlink’s CFTC Speculative Position Limits Monitoring is a key part of our suite of Dodd-Frank compliance solutions.

Key benefits of the Openlink Speculative Limits Monitoring functionality include:

  • Accelerated compliance times
  • Real-time limit monitoring which aggregates futures equivalent exposures across exchange traded and Over-The-Counter (OTC) positions
  • Pre-trade analytics for traders to determine hypothetical positions and potential limit breaches
  • Instant notifications to risk managers of limit or tolerance breaches
  • Aggregations consistent with CFTC prescribed limits for spot-month and non-spot-months for both cash and/or physically settlement
  • Comprehensive coverage of all 28 CFTC selected commodity physical contracts, with flexibility to support other commodity codes and products as they are introduced
  • CFTC position reports

Phil Wang, Openlink SVP of Product Management, said, “Our CFTC Speculative Limits Monitoring compliance solution leverages our industry leading market and technology expertise. We continue to deliver high-value compliance solutions that provide our clients with immediate benefits, requiring  minimal IT investment, and a maintenance-friendly solution that can readily adapt to future changes.”

The CFTC Speculative Position Limits framework existed pre-Dodd-Frank and is intended to protect futures markets from excessive speculation via the use of limits on aggregated positions. In response to the Dodd-Frank Act, OTC trades are now included in these aggregated positions. Limits will go into effect sixty days after the term “swap” is further defined under the Dodd-Frank Act.

Kevin Hesselbirg, CEO of Openlink, said, “Openlink is dedicated to addressing requirements the Dodd-Frank regulatory regime imposes on the financial, commodity and energy markets by developing technology solutions to assist market participants with compliance.”

The Dodd-Frank Wall Street Reform and Consumer Protection Act makes significant changes to regulations governing the U.S. over-the-counter (OTC) derivatives market, with the goals of improving transparency, reducing systemic default risk and promoting market integrity. Learn more about the CFTC’s Speculative Limits.

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