AcadiaSoft Inc, a provider of margin automation solutions for counterparties engaged in collateral management worldwide, has launched AcadiaSoft Expert Services, a suite of consultative offerings designed to support firms as they comply with new regulations.
AcadiaSoft’s ISDA SIMM Approval Guidance, a service providing firms a streamlined, expert-driven process to help obtain permission from regulators to use the ISDA SIMM for Initial Margin (IM) calculations, launches today as the first available offering within Expert Services.
“AcadiaSoft has extensive experience in risk, collateral and change management and its partners are expert in risk modelling, valuation, back testing and validation,” says Chris Walsh, Chief Executive Officer of AcadiaSoft. “As an industry collaborative, we have unique insight into cutting edge development and we have always been keen to share our knowledge with others and to make processes more efficient across the industry. Through Expert Services, market participants can capitalise on our expertise so that they can focus their efforts on their core business function.”
As part of the new regulatory framework implemented in 2016 by the Basel Committee on Banking Supervision (BCBS) and the International Organisation of Securities Commissions (IOSCO), many participants in the non-cleared OTC derivatives market will eventually be required to post and collect IM, standardise collateral terms and quickly resolve disputes. In order to provide participants with a single, delineated model through which firms could calculate IM, the International Swaps and Derivatives Association (ISDA) developed the Standard Initial Margin Model, or SIMM.
To take advantage of the ISDA SIMM, market participants governed by US regulators must first obtain permission from the US Federal Reserve. AcadiaSoft’s ISDA SIMM Approval Guidance service pairs each firm with an AcadiaSoft expert who advises and directs the approval process. This includes determining any firm-specific requirements, identifying and compiling supporting research materials, and advising on risk management best practices for use prior to and upon approval.
“Requesting and securing approval to use the ISDA SIMM is a complex, time-consuming process that requires significant internal resources,” says Mark Demo, Product Director at AcadiaSoft. “AcadiaSoft’s team is well-versed on the approval requirements and maintains ongoing relationships with both existing in-scope firms and regulators. As Phase III and beyond firms look to secure approval themselves, they can rely upon our knowledge and experience to make the regulatory compliance process as quick, painless and cost-effective as possible.”
