Firms Newly Subjected to Phase 6 of Uncleared Margin Rules Now Accessing the AcadiaPlus Platform
Acadia, the leading industry provider for integrated risk management services for the derivatives community, is pleased to announce that it has successfully onboarded over 1,000 counterparty groups covered by Phase 6 of the Initial Margin (IM) rollout of Uncleared Margin Rules (UMR) onto its AcadiaPlus platform.
Nearly 900 firms are actively monitoring their regulatory IM exposure and set up for Acadia’s IM Threshold Monitor (IMTM). Over 200 firms have signed up for IM Exposure Manager (IMEM) for the calculation and reconciliation of IM exposure, leveraging either the ISDA SIMM™ or schedule method. Acadia expects these firms will go live over the next 90 days, with over 50 of these firms moving margin since 1st September go live.
Of these firms, over 100 are leveraging Acadia’s IM Risk Generator service for the calculation of their risk sensitivities to create the Common Risk Interchange Format (CRIF) that forms the input to firm’s initial margin calculation.
“Bringing these firms into the Acadia fold and onto our robust AcadiaPlus platform is the result of a year’s long effort to work closely with our global clients and their regulators to provide the highest quality infrastructure while minimizing costs and complexities across the entire margin, collateral and risk management cycle,” said Chris Walsh, Acadia CEO. “We’re proud of our achievements working with our partners across the industry over UMR Phases 1 through 6 and we are excited for the future of our cutting-edge platform. Acadia is well-positioned to help clients further integrate their risk, agreement and collateral management functions, allowing for a fully optimized and efficient risk management process.”
Given the regulatory changes brought by Phase 6, all in-scope firms must implement heightened monitoring of Reg IM exposures to preparing or moving initial margin before it needs to. Although the majority are still monitoring today, Acadia expects in-scope firms to utilize either IMEM or IMRG as they get closer to breaching over coming months and years, using the crucial data provided by the platform for a convenient and centralized tool to track thresholds, ensuring compliance and trading continuity.
Stuart Smith, Co-Head of Business Development at Acadia, added, “We appreciate the opportunity to partner with our UMR clients. We’ll continue to service clients with their post-trade margin workflow processes and are excited to continue our relationships by further investing in areas such as pre-trade analytics, optimization, agreement management, payments, and data exploration.”
AcadiaPlus is a standard, open communications platform used by the derivatives industry with specialist applications and a third-party partner ecosystem that enables straight-through-processing of the entire risk-mitigation lifecycle. AcadiaPlus encompasses the Company’s flagship services that assist clients in complying with UMR, including, IM Exposure Manager, and Margin Manager, IM Threshold Monitor and Acadia’s award-winning IM Risk Generator. These combined services provide a central source of standardized data, reconciliation, dispute resolution and threshold monitoring for the industry. Acadia has now integrated the vast majority of counterparty groups covered by all of the IM Phases onto its platform.
