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 SIMMTM. 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.