Alliance will enable straight-through processing for complete margin lifecycle
Business information provider IHS Markit (Nasdaq: INFO) today announced an alliance with AcadiaSoft, a provider of margin automation solutions, to connect the firms’ industry leading platforms for managing initial margin. The alliance will help the non-cleared derivatives community comply with margin regulation, as potentially over 1,000 firms are brought into scope in phase four (September 2019) and phase five (September 2020).
In connecting their platforms, the integration will help shared customers achieve straight-through processing for the entire margin lifecycle, which includes negotiating margin terms, calculating initial margin for each trade and valuing and exchanging collateral daily.
Two-way data exchange between IHS Markit and AcadiaSoft will unite the expertise of both firms and automate how technology platforms supporting the margin process source data from one another. Key contractual terms from margin and custodial agreements generated by IHS Markit will be transmitted to AcadiaSoft’s Agreement Manager, and risk sensitivities calculated by IHS Markit will power the Initial Margin Exposure Manager, part of the AcadiaSoft Hub. In turn, margin reconciliation data from AcadiaSoft will be channeled to users of the initial margin calculation and collateral management services from IHS Markit.
“The regulatory requirements for initial margin are complex and to meet fast approaching compliance deadlines, phase four and five firms need to have the right technology in place as soon as possible,” said Nosheen Amir-Ebrahimi, managing director and product head, Derivatives Data and Valuation Services at IHS Markit. “Creating seamless connections with AcadiaSoft is part of how we are helping in-scope firms reduce the cost of compliance and technology.”
“A cornerstone of AcadiaSoft’s strategy is the ability to integrate with key vendors to provide effective straight-through solutions that are simple to adopt,” said Chris Walsh, CEO of AcadiaSoft. “Our alliance with IHS Markit further demonstrates our commitment to our clients as we continually adapt to help them navigate today’s regulatory environment.”
“The integration of Margin Xchange™ from IHS Markit to automate and structure complex margin and custodial legal agreements and store contract data with AcadiaSoft brings together all the necessary components for straight-through processing across the margin lifecycle,” said Darren Thomas, managing director, Regulatory and Compliance at IHS Markit. “Customers will be able to manage the margin cycle holistically end-to-end from agreement creation to margin calculation and settlement with greater ease and efficiency.”
About IHS Markit (www.ihsmarkit.com)
IHS Markit (Nasdaq: INFO) is a world leader in critical information, analytics and solutions for the major industries and markets that drive economies worldwide. The company delivers next-generation information, analytics and solutions to customers in business, finance and government, improving their operational efficiency and providing deep insights that lead to well-informed, confident decisions. IHS Markit has more than 50,000 business and government customers, including 80 percent of the Fortune Global 500 and the world’s leading financial institutions. Headquartered in London, IHS Markit is committed to sustainable, profitable growth.
IHS Markit is a registered trademark of IHS Markit Ltd. and/or its affiliates. All other company and product names may be trademarks of their respective owners © 2019 IHS Markit Ltd. All rights reserved.
.@IHSMarkitFinSer and @AcadiaSoft_ to Deliver Integrated Solution Suite for Initial Margin Management