Acadia, a provider of integrated risk management services for the derivatives community, has onboarded over 300 of an estimated 330 counterparty groups covered by Phase 5 of the Initial Margin (IM) rollout under the Uncleared Margin Rules (UMR) onto AcadiaPlus.
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, Initial Margin Exposure Manager (IMEM), and Margin Manager, as well as two new services- IM Risk Generator (IMRG) and IM Threshold Monitor (IMTM). These combined services provide a central source of standardised data, reconciliation, dispute resolution and threshold monitoring for the industry. Acadia has now integrated the vast majority of counterparty groups covered by IM Phases 1 through 5 onto its platform.
“We are very proud of our achievements in partnering with the industry on this monumental task in building our cutting-edge platform that nearly all in-scope firms to date are using,” says Acadia CEO Chris Walsh. “We worked hand-in-hand with our global client base to develop a comprehensive suite of solutions that truly break down complexity and cost. As a result, Phase 6 firms will now be able to leverage all that we’ve already accomplished with AcadiaPlus, enjoying maximum benefit at minimum cost.”
Acadia has onboarded over 300 counterparty groups encompassing approximately 2,000 new Regulatory IM CSA agreements and over 5,000 new Regulatory monitor agreements for Phase 5 of the regulatory framework established by the Basel Committee on Banking Supervision (BCBS) and the International Organization of Securities Commissions (IOSCO). All firms are using either IMTM for the monitoring of regulatory IM exposure and/or IMEM for the calculation and reconciliation of IM exposure, leveraging either the ISDA SIMM™ or schedule method. In addition, Acadia has onboarded over 60 firms for its IM Risk Suite of products which includes sensitivity and IM exposure calculation using ISDA SIMMTM or Schedule methodologies
“Acadia is a vital resource for in-scope firms,” adds Mark Demo, Head of Community Development at Acadia. “We held regular working group meetings for IM Phase 5 throughout the past two years, as well as providing an IM Soft Launch program to offer step-by-step guidance and share lessons learned from the earlier phases. We have already started this process for Phase 6 firms. There is no reason for these firms to go at this alone.”
