NORWELL, Mass.--(BUSINESS WIRE)--AcadiaSoft Inc., the leading industry provider of margin automation solutions for counterparties engaged in collateral management worldwide, today announced that the integration into the AcadiaSoft Hub of the six additional in-scope firms under Phase 2 of the new IM rules for non-cleared derivatives has been completed successfully. The additional firms chose to use the Hub for IM in order to comply with the new rules, which became effective on September 1, 2017 under the new regulatory framework established by the Basel Committee on Banking Supervision (BCBS) and the International Organization of Securities Commissions (IOSCO).
Now, all counterparty groups that are in-scope for the new rules are using the Hub for IM calculation and reconciliation, while nearly all are also using the Hub for IM margin call issuance and response. The new regulatory framework requires a standard calculation of how much IM to exchange, which must be either schedule-based or based on an approved model, such as the ISDA SIMM™, or Standard Initial Margin Model, calculation.
In the two weeks since the “go-live” date for Phase 2, disparities between IM calculations by Phase 2 firms and their trading counterparties have been much smaller as compared to the phase 1 firms that came live under the rules a year earlier. “Day 1 average differences for Phase 2 firms were significantly reduced from Day 1 average differences for Phase 1 firms,” said Mark Demo, AcadiaSoft Product Director. “The Phase 2 firms have used their extra time wisely.”
As of September 1, 2018, Phase 3 firms including regional banks, pension funds and asset managers will be required to post IM for all in-scope non-cleared derivatives transactions under the new regulatory framework.
About AcadiaSoft, Inc.
AcadiaSoft, Inc. is a financial industry collaborative that is uniquely focused on delivering margin automation and standards for counterparties engaged in collateral management. AcadiaSoft allows market participants to communicate vital information on exposures, commitments and adjustments between counterparties in a complete, verifiable and secure manner.
Owned and backed by the investment of 16 major industry participants and infrastructures, the AcadiaSoft community has grown to over 250 member firms exchanging approximately $200B of collateral on daily basis. The Company’s growth has been driven by regulatory change in the derivatives industry that is increasing the demand for automated, transparent and verifiable collateral management.
AcadiaSoft’s Advisory Groups, Best Practice Forums and Working Groups provide a unique framework for integrating the thought leadership and capabilities of over 700 market participants, market infrastructures and key service providers across the industry.
AcadiaSoft is headquartered outside of Boston in Norwell, MA and has offices in London, Tokyo and New York.
For more information, see www.acadiasoft.com.
