NORWELL, Mass.--(BUSINESS WIRE)--AcadiaSoft Inc., the leading provider of margin automation solutions worldwide, today announced that it is offering two new services to streamline the generation of inputs necessary for margin calculations using *ISDA SIMM™. Market participants that are in-scope for the calculation of initial margin for uncleared derivatives can access risk sensitivities calculation services both through AcadiaSoft and through Bloomberg as an integrated part of their Bloomberg workflow.
The AcadiaSoft solution allows firms to take advantage of an automated process that begins with the submission of a trade file, incorporates a straight-through process on the AcadiaSoft Hub including AcadiaSoft’s Initial Margin Exposure Manager (IMEM) service, and culminates in a completed margin call. This sensitivities calculation solution is the first risk service to be launched through AcadiaSoft’s previously-announced partnership with Quaternion Risk Management.
The Bloomberg solution allows clients to use Bloomberg’s collateral management solution (BCOL) to generate CRIF files via Bloomberg’s SIMM calculation engine. AcadiaSoft clients can then route these CRIF files to the IMEM tool for reconciliation. Further integration is underway to establish an API-based straight-through workflow across the BCOL and IMEM solutions.
“This collaboration with AcadiaSoft—including connecting our cross-asset collateral management solution, BCOL, to AcadiaSoft’s IMEM solution—offers an additional degree of efficiency for firms in-scope for uncleared margin rules,” said Alejandro Perez, Global Head of Post-Trade Solutions at Bloomberg.
Both services are designed to meet the need for clients to calculate the risk sensitivities required for using ISDA SIMMTM, reducing IT build cost, freeing up quantitative resources for higher-value tasks, and reducing time spent developing and maintaining complex processes in-house.
“These sensitivities calculation services meet a market demand for more automation of highly quantitative processes,” said AcadiaSoft CEO Chris Walsh. “We’re fortunate to be working with two industry leaders in Bloomberg and Quaternion, and the input we’ve received from our client base has been invaluable. We look forward to continuing to collaborate with our industry peers in the coming years to expand the products available through the AcadiaSoft Hub.”
Sensitivities calculation is part of a growing suite of services designed to meet the operational and regulatory requirements of bilateral derivatives users. AcadiaSoft is developing these services with Quaternion Risk Management and offering them through collaborations with enterprise technology providers like Bloomberg, gathering significant input from the major market participants currently subject to daily initial margin requirements.
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 17 major industry participants and infrastructures, the AcadiaSoft community of more than 650 clients exchanges approximately $400B of collateral on a 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.
AcadiaSoft® is a registered trademark of AcadiaSoft, Inc.
About Bloomberg
Bloomberg, the global business and financial information and news leader, gives influential decision makers a critical edge by connecting them to a dynamic network of information, people and ideas. The company’s strength – delivering data, news and analytics through innovative technology, quickly and accurately – is at the core of the Bloomberg Terminal. Bloomberg’s enterprise solutions build on the company’s core strength: leveraging technology to allow customers to access, integrate, distribute and manage data and information across organizations more efficiently and effectively. For more information, visit www.bloomberg.com or request a demo.
About Quaternion® Risk Management
Quaternion Risk Management Limited is a capital markets consulting practice advising on and implementing complex projects with a focus on the quantitative aspects of risk management, trading and finance. Quaternion has worked with some of the world’s leading financial institutions. The firm is headquartered in Dublin, Ireland with offices in London, Dusseldorf and New York. Quaternion partners with Columbia University on systemic risk projects and launched Columbia University’s Fintech Lab in late 2016. opensourcerisk.org is Quaternion’s open source contribution to the risk community.
For more information on Quaternion, see www.quaternion.com
* Licensed from International Swaps and Derivative Association, Inc., All Rights Reserved.
