Automation of margin processes, allowing the entire collateral management workflow to run from the SimCorp Dimension platform, is key benefit of the new partnership
SimCorp, a leading provider of investment management solutions and services for the global, financial services industry, today announced a new product partnership with AcadiaSoft, a global provider of margin automation for counterparties engaged in collateral management.
Developed in close coordination with a number of the industry’s largest financial institutions, AcadiaSoft’s MarginSphere is a margin confirmation community. It streamlines and standardizes communications between counterparties engaged in collateral management, addressing needs from both a functionality and regulatory standpoint. The integration between SimCorp Dimension’s collateral management solution and MarginSphere will enable the entire collateral management workflow to run from the SimCorp Dimension platform.
AcadiaSoft’s MarginSphere service provides automation of the margin process through dispute-based processing and instant management reporting. As a result of the agreement, SimCorp’s clients will be able to use MarginSphere to quickly identify collateral disputes, and improve issue and exception handling, as well as to enable efficiencies, greater STP and faster end-to-end processing. In addition, it allows SimCorp’s clients to communicate vital information on exposures, commitments and adjustments between counterparties in a complete, verifiable and secure manner.
“Collateral has become increasingly important in order to manage credit risk and comply with global central clearing regulation and this is driving a virtual explosion in the amount of traffic related to collateral management, which can no longer be managed manually,” noted Marc Schröter, senior vice president and head of strategic research at SimCorp. “An automated solution is required, and we expect this agreement will create increased value for our clients, enabling them to further minimize operational risk, improve efficiency and enhance transparency.”
“Trading counterparties, compliance departments and regulatory bodies are increasingly requiring a greater level of transparency in the collateral process,” added Craig Welch, CEO of AcadiaSoft. “The partnership delivers the best of both worlds, allowing SimCorp clients to benefit from SimCorp Dimension’s strong position-keeping, exposure calculation and collateral management functionality while getting access to the market-leading margin call messaging functionality.”