Transcend, a provider of collateral, liquidity, and funding solutions, and Acadia, a provider of integrated risk management services, have partnered to deliver an automated, comprehensive and independent Collateral Validation Service.
Transcend, a provider of collateral, liquidity, and funding solutions, and Acadia, a provider of integrated risk management services, have partnered to deliver an automated, comprehensive and independent Collateral Validation Service.
This service allows the buy-side and broker-dealers to confidently manage the growing complexity and volume of margin activity driven by Uncleared Margin Rules (UMR). Transcend and Acadia’s Collateral Validation Service is designed to ensure that all end of day collateral balances held at third-party and tri-party custodians meet the required criteria, including collateral eligibility, sufficiency, concentration, and wrong-way risk according to the requirements defined in their related collateral agreements.
This service integrates Transcend’s tri-party and custodian connectivity and collateral validation analytics with Acadia’s margin, collateral, and agreement management products. Delivered together, the combination provides sophisticated validation capabilities in accordance with client agreements and transparently communicates results daily.
By ensuring clients’ collateral portfolios effectively mitigate their derivatives exposures, the Collateral Validation Service will help firms comply with UMR Phase 6 requirements and address the manual challenges that clients in earlier phases of UMR are still looking to resolve. The service will be hosted on Acadia’s platform independent of a client’s existing collateral management workflow, ensuring flexibility.
