Precision at the Intersection of Funding, Discounting, and Risk

Modern derivatives markets contain persistent structural inefficiencies. These inefficiencies do not exist because the theory is misunderstood, but because responsibility for funding, discounting, collateral, credit, and clearing is fragmented across organisations, legal agreements, and technology stacks. The result is that economically equivalent risks are routinely valued, funded, and margined inconsistently.

We specialise in identifying and monetising these inefficiencies — systematically, repeatably, and at scale.

Our focus is on the mechanics that sit beneath headline pricing: funding curves, discounting conventions, collateral eligibility, margin methodologies, and balance-sheet constraints. Small differences in how these elements are modelled or applied can create large, recurring P&L effects, particularly in portfolios with material funding deltas, long-dated exposures, or complex clearing structures.

Most institutions address these topics in isolation. Trading desks optimise execution. XVA teams manage reserves. Treasury funds the balance sheet. Clearing is treated as an operational necessity. Each function is rational in isolation — and collectively sub-optimal.

We take a different approach. We treat funding, discounting, XVA, collateral, and clearing mechanics as a single optimisation problem. By analysing exposures across counterparties, CCPs, and legal frameworks, we uncover valuation mismatches and funding asymmetries that are invisible within siloed processes but material at the portfolio level.

This perspective allows clients to:

• convert pricing inconsistencies into realised returns,
• reduce CVA and Initial Margin without changing economic risk,
• improve capital efficiency and balance-sheet utilisation, and
• gain transparency over where funding costs are created — and where they can be eliminated.

Our work is grounded in how markets actually function: under regulatory constraints, during periods of stress, and across multiple clearing and funding relationships. The objective is not theoretical elegance, but durable economic advantage.

In a market where most participants focus on price, we focus on how price is funded, discounted, and margined — and on the value that emerges when those mechanics are treated as one.