Acadia and Capitolis announced the launch of SA-CCR Optimization, which is expected to bring considerable cost savings to firms subject to the Standard Approach to Counterparty Credit Risk (SA-CCR) regulations, focusing on specific FX products such as FX forwards, options, deliverable swaps and cross-currency swaps. Capitolis is a SaaS platform for financial resource optimization in capital markets.
With SA-CCR Optimization, banks and participating financial institutions provide trade data, which Acadia and Capitolis process and use to generate a series of FX transactions that reduce capital requirements, leaving each client’s net FX risk profile largely unchanged.
“The newest wave of capital regulation is pushing firms to be more mindful of capital consumption across their businesses. SA-CCR Optimization is an opportunity for them to reduce consumption levels and deploy their capital in a more efficient manner,” said Chris Walsh, Acadia’s CEO, in a statement.
The launch of SA-CCR Optimization combines Acadia’s risk analytics and margin data platforms and Capitolis’ proprietary technology, allowing for greater capital optimization for financial institutions.
Gil Mandelzis, CEO and founder of Capitolis, said in a statement: “Our continued integration withAcadia’s trusted platform is an effective solution for our clients to maximize efficiency in SA-CCR balance sheet optimization. Our partnership will also position the industry for success in multilateral optimization of SA-CCR.”
SA-CCR requirements for financial institutions based in some parts of Europe went into effect in June 2021, while regulations in the United States are set to be implemented on January 1, 2022.