Northern Trust (NTRS) has launched an automated solution for initial margin calculation to help asset manager and asset owner clients comply with global regulations governing trading of over-the-counter (OTC) derivatives.
The solution, made available to clients in advance of a key deadline for implementation of Uncleared Margin Rules (UMR), was developed as part of Northern Trust’s integration of Acadia’s margin management solutions and fully complements Northern Trust’s full suite of collateral and OTC processing capabilities.
“Our integrated global architecture and investments in core technology allowed us to build a unified solution for all collateral clients and is a great example of our technology vision at work,” says Pete Cherecwich, President of Corporate & Institutional Services at Northern Trust. “By investing the time and technology up front, we can deliver solutions that offer agility, automation, and long-term value.”
Through its partnership with margin and risk management expert Acadia, Northern Trust offers market-approved, automated support for an independent calculation of initial margin to help investors in OTC derivatives meet complex UMR requirements. Leveraging algorithmic technology to identify the best assets available to meet regulatory eligibility requirements, the solution identifies optimal assets to be deployed to meet margin obligations – helping our clients maximise investment performance.
“A key differentiating feature of this initiative is that our investment in technology architecture allowed us to identify, integrate, test and launch the solution in full ahead of the regulatory deadline,” says Nadia Ivanova, Head of C&IS Business Services and North America Asset Servicing Chief Operating Officer at Northern Trust. “By pairing this solution with our other derivatives enhancements, we’ve been able to automate previously manual processes for faster processing and greater accuracy.”
These advanced capabilities are part of Northern Trust’s comprehensive range of collateral, derivatives and liquidity management solutions. Clients can access these services globally, either on a component basis – to complement their current in-house practices – or as part of a broader suite of collateral management solutions.
