The Uncleared Margin Rules (UMR) have been a huge force for driving standardization. In a recent report, Mark Demo, head of Community Development writes the firm is seeing this playing out now across the market in several different ways.
In one example, firms are pushing to extend the transparency and timeliness benefits of ISDA SIMMTM into the calculation and exchange of non-regulatory initial margin. In another example, capital calculations which were largely based on internal risk models are now being phased out ahead of 2023 regulatory requirement that now favors a more standardized approach.
Responding to these trends, Acadia is investing in areas such as risk, messaging, payments, agreements, term sheets and data exploration.