Thirty two IM Phase 5 firms have successfully joined AcadiaSoft and TriOptima’s IM Phase 5 soft launch initiative and more than 25 additional firms are scheduled to join before the end of 2020. The soft launch enables firms that are in-scope for Phase 5 and 6 of the Uncleared Margin Rules (UMR) initial margin requirement to monitor their regulatory IM exposure in advance of becoming operationally ready to move margin. It also allows them to have IM CSAs or custody accounts in place to test the Initial Margin Exposure Manager before going live.
“When the one year delay was announced, we heard from many in-scope firms that did not want to delay their IM compliance projects given the progress they had already made internally and the continued uncertainty heading into 2021,” says Mark Demo, Head of Community Development at AcadiaSoft. “The soft launch initiative we’ve built with TriOptima will allow firms to build on the progress made thus far and ensure they are equipped to move margin as soon as they are in-scope.”
AcadiaSoft anticipates that more than 250 firms will ultimately be in-scope for IM Phase 5. Firms that get up and running ahead of next year’s official compliance date of 1 September, 2021 will avoid a compliance crunch.
“We’re really glad that we decided to participate in the soft launch,” says Jill Harvey, Senior Treasury Operations Manager at UK-based Nationwide Building Society. “The earlier we can get a view on our IM exposure and how the new process works, the easier it makes our go-live next September.”
“Having worked with AcadiaSoft to develop and maintain the Initial Margin Exposure Manager (IMEM), we are delighted to collaborate with them again to introduce Initial Margin Threshold Monitor, which enables free testing of IMEM for UMR Phase 5 and 6 firms until 1 September, 2021,” says Mary Harris, Head of triResolve Business Management – North America at TriOptima.