- Community of 300+ firms already matching Interest monthly on cash collateral today.
- A major multinational asset management firm and an investment bank are the first two clients live on the swap payment matching platform.
- Firms can agree on precalculated payments, reconcile and resolve issues with counterparties in a standardized messaging format.
Acadia, the leading industry provider of integrated risk management services for the derivatives community, announced the introduction of Payments Manager, a new suite of workflow automation services centered around payments.
The new payment service leverages Acadia’s position as the market leader in the global derivatives marketplace where thousands of firms and over 80% of all bi-lateral OTC derivative margin calls are initiated and cash or securities collateral are pledged to meet those obligations daily.
“Today, the interest on cash collateral and swap payment matching process is a significant driver of inefficiency for buy and sell-side firms due to the email exchange of data and dual-party manual matching and exception workflows. Acadia has built a unified, automated interest payment, securities collateral and swap payment matching process and combined it in a workflow wrapper, allowing buy and sell-side clients to significantly increase operational alpha,” says one of the first firms using Acadia’s Payments Manager.
For example, when both firms are using Acadia’s automated monthly interest statement matching process, statements matchup instantly upon receipt with 90% plus payments matched (or written off) before settlement.
The new payments matching services are in most cases already included as part of a firms AcadiaPlus subscription and available in the familiar and easy to use Acadia User Interface along with multiple import/export options for ease of integration.
“Lack of automated payments matching has been a key operational hurdle for buy and sell-side clients, especially with increased pressure on operational headcounts,” said Jack Dixon, Head of Workflow Automation at Acadia. “This new functionality coupled with Acadia’s industry leading margin and collateral services will help clients save additional time and money.”
“Acadia is a vital resource in margin and collateral messaging, and we expect they’ll become the same in derivatives payment matching and workflow”, said a major asset manager and investment bank using Acadia’s Payments Manager.
The supported payment types under Payments Manager are set to grow over the next year to include a wide range of Derivative and Securities Payments, with Acadia continually working with the industry to improve and expand its usability.