Derivatives, particularly perpetual futures (perps), often see significantly more trading volume than spot markets in the crypto space. This is because derivatives allow traders to speculate on price movements without directly holding the underlying asset, often using leverage to amplify potential gains. Managing margin calls efficiently is crucial in these high-volume, high-leverage environments, as even small price movements can trigger margin requirements. Without a robust system for handling margin calls and collateral, firms are at greater risk of liquidation or forced position closures, which can lead to significant losses. Efficient derivatives trading requires real-time automation and seamless integration between custodians and exchanges to ensure stability and security in the market.
BridgePort provides an integrated solution that automates and streamlines margin management for trading firms trading derivatives using derivatives. By connecting exchanges and custodians, BridgePort enables real-time monitoring of margin requirements and ensures that additional assets can be automatically allocated or delivered when margin calls occur. Key features include:

Automated Margin Call Management
BridgePort’s infrastructure ensures that assets designated for margin support are automatically transferred from custodians to exchanges when required, preventing manual intervention and reducing delays.

Real-Time Asset Lock-Up
Trading firms can lock up assets for margin support at custodians, keeping them secure but ready for instant allocation across exchanges as needed.

Pre-Set Asset Allocation
Firms can designate assets as available for future margin support, locking them up without assigning them to a specific exchange, offering flexibility in asset management.

Instant Notifications
In cases where the assets held by a custodian are insufficient to meet margin calls, BridgePort immediately notifies the trading firm, allowing them to take action to avoid liquidation or penalties.

BridgePort’s middleware enhances the efficiency and security of derivatives trading by ensuring that margin requirements are met in real-time while keeping assets safely managed through custodians. This reduces operational friction and provides firms with the confidence to manage derivatives positions across multiple exchanges.

