Integrated Solution Automates Management of CCP, Bilateral and Prime Broker Margin Requirements for Buy- and Sell-Side Firms
Advent Software, Inc. (NASDAQ: ADVS), a leading provider of software and services for the global investment management industry, have announced the launch of the new Interest Rate Swaps (IRS) package for the Syncova® platform. The IRS package is a set of collateral management tools designed to help buy- and sell-side firms address new U.S. and European regulations related to the over-the-counter (OTC) derivatives market. Together, the tools deliver more automation and control to firms facing the challenges of managing multiple central counterparties (CCPs), and Derivatives Clearing Members (DCMs), and will help them reduce operational risk through improved transparency.
The regulations resulting from the Dodd Frank Act in the US and the European Market Infrastructure Regulation (EMIR) effective this year fundamentally change the way OTC derivatives transactions are executed. While these regulations are expected to bring greater transparency to the market, they also present a number of operational challenges for fund managers. The new requirements significantly impact many aspects of how hedge funds and asset managers conduct business, including how they finance portfolios, manage collateral, and choose clearing houses and DCMs.
Advent is working closely with major CCPs as they define and develop their models in response to the regulatory requirements, and has developed the IRS package to help firms respond to and manage these changes. To allow greater control over margin, the solution allows firms to perform what-if calculations that help ensure collateral requirements are managed effectively and that the optimal clearing house is used. The solution also allows firms to independently validate counterparties’ margin calculations, for almost any product type based on the calculation methodologies of each clearing house. The Syncova® platform also provides comprehensive drill down into the margin requirements reports and margin statements.
“The new regulations will have a lasting impact on how the buy-side conducts business,” said Liam Huxley, Vice President, Business Development, Advent Software. “We see opportunity for our clients to improve operations while addressing regulatory mandates. The new capabilities within Syncova® will help firms be compliant with these regulations and manage their collateral more effectively while putting them in a stronger position to leverage the new transparency and competition among CCPs for the long-term.”
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