Acadia Successfully Onboards Over 1,000 Phase 6 Initial Margin Firms

Nearly 900 firms are actively monitoring their regulatory IM exposure and set up for Acadias IM Threshold Monitor (IMTM).

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Thursday, September 8, 2022
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Banking, Accounting, Networks, Professional Services, Data Management, Technology, Small Business, Other Professional Services, Legal, Insurance, Finance, Other Technology, Consulting, ISDA, UMR, View, Margin (finance), Solution, Business development, LinkedIn, CRIF, Risk management, Compliance, IM, Twitter, Risk, Business, Industry, Pharmaceutical industry
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NEW YORK, MASSACHUSETTS, NORTH AMERICA, UNITED STATES, IRELAND, UNITED KINGDOM, EUROPE, TOKYO, ACADIA, BOSTON, MA, LONDON
Summary
Key Points: 
  • Nearly 900 firms are actively monitoring their regulatory IM exposure and set up for Acadias IM Threshold Monitor (IMTM).
  • 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 Acadias IM Risk Generator service for the calculation of their risk sensitivities to create the Common Risk Interchange Format (CRIF) that forms the input to firms initial margin calculation.
  • 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.


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.

ABOUT ACADIA

Acadia is the leading industry provider of integrated risk management services for the derivatives community. Our risk, margin and collateral tools enable a holistic risk management strategy on a real-time basis within a centralized industry standard platform.

Acadia’s comprehensive suite of analytics solutions and services helps firms manage risk better, smarter, and faster, while optimizing resources across the entire trade life cycle. Through an open-access model, Acadia brings together a network of banks and other derivatives participants, along with several market infrastructures and innovative vendors.

Backed by 16 major industry participants and market infrastructures, Acadia is used by a community of over 2000 firms exchanging more than $1 trillion of collateral on daily basis via its margin automation services. Acadia is headquartered in Norwell, MA and has offices in Boston, Dublin, Dusseldorf, London, New York, Manila, and Tokyo. Acadia® is a registered trademark of AcadiaSoft, Inc. For more information, visit acadia.inc. Follow us on Twitter and LinkedIn.

Acadia® is a registered trademark of AcadiaSoft, Inc.

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