In market first, BNY Mellon is now enabling clients to outsource their non-cleared margin calculations through AcadiaSoft
Buy-side derivatives market participants are now able to fully outsource their entire non-cleared margin workflow, via the market's first end-to-end collateral solution developed by BNY Mellon.
Going forward, clients can access AcadiaSoft's Initial Margin (IM) Risk Suite of low-touch tools for margin calculation, reconciliation and messaging as part of BNY Mellon's collateral service offering.
This collaboration, in conjunction with BNY Mellon's existing bilateral margin capabilities from post-trade and settlement through to collateral segregation and ongoing position monitoring, enables clients to meet their obligations under Phases 4 and 5 of the non-cleared margin rules, all in one place.
Under the rules, counterparties are required to calculate IM on non-cleared derivatives trades. Depending on the portfolio in question, these calculations may be numerous and complex, and they are required to be computed daily.
AcadiaSoft acts as a central repository for calculating IM, enabling market participants to use the utility as a single point of contact through which to conduct their messaging and calculations.
While already utilizing AcadiaSoft for margin messaging, BNY Mellon now becomes the first collateral outsource provider to support the IM calculation and reconciliation needs of clients that fall within the scope of the non-cleared margin rules.
"Our aim is to streamline the collateral workflow for clients, making it easier for them to meet their regulatory requirements. Adding the AcadiaSoft functionality means they'll only need to share their derivatives portfolio with us once daily: thereafter, we'll calculate their IM and instruct the movement of the collateral required accordingly," explains Jonathan Spirgel, Global Head of Liquidity and Segregation Services at BNY Mellon.
"We're thrilled to be able to offer buy-side derivatives market participants access to AcadiaSoft's IM calculation and reconciliation services for the very first time through BNY Mellon," says Chris Walsh, CEO of AcadiaSoft.
BNY Mellon provides comprehensive collateral management for clients, including a range of segregation options, collateral administration, collateral transformation and other services.
ABOUT BNY MELLON
BNY Mellon is a global investments company dedicated to helping its clients manage and service their financial assets throughout the investment life cycle. Whether providing financial services for institutions, corporations or individual investors, BNY Mellon delivers informed investment management and investment services in 35 countries. As of March 31, 2019, BNY Mellon had $34.5 trillion in assets under custody and/or administration, and $1.8 trillion in assets under management. BNY Mellon can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute or restructure investments. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available on www.bnymellon.com. Follow us on Twitter @BNYMellon or visit our newsroom at www.bnymellon.com/newsroom for the latest company news.
AcadiaSoft, Inc. is the leading industry provider of risk and collateral management services for the non-cleared derivatives community. The AcadiaSoft Hub encompasses a suite of applications and analytics that enable and measure the complete STP workflow from CSA agreement management, risk services, margin and collateral management through to settlement. Backed by 17 major industry participants and market infrastructures, AcadiaSoft is used by a community of more than 650 firms exchanging approximately $400B of collateral on a daily basis via its margin automation services. AcadiaSoft is headquartered in Norwell, MA, and has offices in London, New York and Tokyo. For more information, visit acadiasoft.com.