AcadiaSoft Announces Initial Margin (IM) Monitoring Service

5 Mar by Vitaliy Dadalyan

AcadiaSoft Announces Initial Margin (IM) Monitoring Service

New service will allow Phase 5 firms under non-cleared margin
requirements to monitor their IM exposure in relation to the permissible
$50MM IM threshold and trigger automated agreement onboarding

NORWELL, Mass.–(BUSINESS WIRE)–AcadiaSoft Inc., the leading industry provider of risk and collateral
management services for the non-cleared derivatives community, today
announced plans to release an Initial Margin (IM) Monitoring Service.
The service is designed to provide IM Phase 4 and Phase 5 firms with the
ability to monitor their IM exposure and compare it to their estimated
IM threshold in order to postpone negotiation and implementation of
required legal documents. Once a firm meets their maximum IM threshold,
the service will automatically trigger the onboarding process for CSA
(Credit Support Annex) and custody agreement negotation.

The upcoming service is in response to guidance recently issued by the
Working Group for Margin Reform (WGMR) within the Basel Committee for
Banking Supervision (BCBS) and the International Organization of
Securities Commissions (IOSCO), which suggests that global prudential
regulators consider providing relief to bi-lateral OTC Derivative market
participants in-scope to exchange two-way regulatory initial margin in
2020 from the documentation requirements under the non-cleared margin
rules until they approach the 50MM IM threshold. In providing guidance,
the regulators emphasized its expectation that covered entities will act
diligently when their exposures approach the threshold to ensure that
the relevant arrangements needed are in place if the threshold is
exceeded.

Chris Walsh, CEO of AcadiaSoft said, “By removing the requirement to
have legal agreements in place prior to a threshold breach, the
regulators have introduced a new need to not only monitor IM thresholds
but to have agreements quickly onboarded. By offering IM monitoring in
conjunction with our Agreement Manager service, AcadiaSoft can identify
when a CSA is required, and have it set up, calculated, margined and
settled in a just-in-time manner using an industry-standard, automated
process.”

AcadiaSoft will release its Agreement Manager service in the second
quarter of 2019. The service will create an industry-wide, authoritative
data store of legal and operational collateral agreement information for
OTC Derivatives and simplify the integration process to new on-line CSA
negotiating tools. The new IM monitoring service will combine existing
aspects of AcadiaSoft’s Agreement Manager and its IM Exposure Manager
service while leveraging connectivity with on-line document negotiation
platforms to form a just-in-time documentation negotiation and margin
activation service.

About AcadiaSoft, Inc.

AcadiaSoft, Inc. is the leading industry provider of risk and collateral
management services for the non-cleared derivatives community. The
AcadiaSoft Hub encompasses a suite of applications and analytics that
enable and measure the complete STP workflow from CSA agreement
management, risk services, margin and collateral management through to
settlement. Backed by 17 major industry participants and market
infrastructures, AcadiaSoft is used by a community of more than 650
firms exchanging approximately $400B of collateral on daily basis via
its margin automation services. AcadiaSoft is headquartered in Norwell,
MA and has offices in London, New York and Tokyo.

For more information visit acadiasoft.com.

Follow us on Twitter: https://twitter.com/AcadiaSoft_
and LinkedIn: https://www.linkedin.com/company/acadiasoft-inc/.

AcadiaSoft® is a registered trademark of AcadiaSoft, Inc.

Contacts

Press:
Christina Kim
(212) 754-5437
[email protected]

Laura Craft
+44 20 3954 0196
[email protected]