Acadia and Transcend form joint collateral validation service ahead of UMR

Transcend and Acadia have teamed up for 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).

The 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.

It 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.

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.

“With increased pressure from UMR, asset managers and broker-dealers alike are challenged with creating efficient and scalable processes for new compliance requirements. Our Collateral Validation Service empowers firms to confidently and seamlessly respond to the new and existing margin requirements,” said Bimal Kadikar, CEO of Transcend, in a statement.

“Acadia provides a range of services that assist firms with their regulatory requirements. By partnering with Transcend, we continue to ensure that our clients benefit from a more streamlined and automated approach to UMR compliance,” says Mark Demo, head of Business Development at Acadia, in a statement.

Source

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