SimCorp Dimension Release Introduces New Solution for Margin Call Workflows Via AcadiaSoft’s MarginSphere Service

2 February 2017

SimCorp, a leading provider of investment management solutions and services for the global financial services industry, has released version 6.1 of its flagship solution, SimCorp Dimension, introducing a long line of new modules and enhancements across front, middle and back office. Among the most notable innovations is a Margin Manager module, which enables users to optimize and ultimately automate margin call workflows through AcadiaSoft’s MarginSphere industry utility.

With the global adoption of BCBS/IOSCO’s new margin requirement rules for non-centrally cleared derivatives kicking in, 2017 is expected to be a year of fundamental change within collateral management. The new rules introduce mandatory exchange of variation margin from 1 March, 2017 and mandatory exchange of initial margin gradually from 2016 to 2020. Studies estimate that the new rules will increase the number of margin calls by five to ten times, making the need for efficient workflows and automation critical.

Mark Baker, Product Manager, Collateral Management, at SimCorp commented: “For firms that trade OTC derivatives, including most of our clients, these new rules will pose a considerable operational burden within the back office, and they will force firms to start considering collateral from a risk and front office perspective. Having an integrated solution that enables them to handle margin call processes efficiently, including the effective use of automation, could reduce their cost of compliance significantly.”

The Margin Manager in SimCorp Dimension supports both single and bulk margin call workflows. The built-in adaptor allows for swift processing of margin calls between SimCorp Dimension and the AcadiaSoft MarginSphere service, while a dashboard solution provides the ability to quickly overview, access and prioritize workflows.

Other new additions to SimCorp Dimension released with version 6.1 include:

  • Coric Connect: A solution that shortcuts the implementation of the SimCorp Coric client reporting solution using a pre-canned data mart to leverage relevant data from SimCorp Dimension’s data warehouse.
  • Front Office: Numerous updates, including new functionality for FX handling, plus a pre-trade compliance API that enables portfolio managers who operate with order generating tools outside of SimCorp Dimension to perform pre-trade investment checking of these within the system.
  • Mobile Alerts Inbox: Supporting the trend of mobility in the workplace, this smartphone app allows you to handle exceptions/alerts swiftly and effectively while being away from the desk, for instance attending meetings, commuting, or from home. The alerts and commands are instantly reflected in SimCorp Dimension.

Commenting on the new SimCorp Dimension release, Marc Schröter, SVP of SimCorp Product Management said: “With the complex and constantly changing environment investment managers are facing, having an up-to-date and tightly integrated platform is key. Without it, you will be forced to adopt a high degree of manual processes and expose yourself to operational risk. We continue to invest more than 20% of our revenue in R&D, making sure our clients are able to operate efficiently.”

The next version of SimCorp Dimension is planned for release on 1 August 2017.

SimCorp provides integrated, best-in-class investment management solutions to the world’s leading asset managers, fund managers, asset servicers, pension and insurance funds, wealth managers and sovereign wealth funds. Whether deployed on premise or as an ASP solution, its core system, SimCorp Dimension, supports the entire investment value chain and range of instruments, all based on a market-leading IBOR. SimCorp invests more than 20% of its annual revenue in R&D, helping clients develop their business and stay ahead of ever-changing industry demands. Listed on NASDAQ Copenhagen, SimCorp is a global company, regionally covering all of Europe, North America, and Asia Pacific. 

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