Acadia announced it’s developing new functionality in Agreement Manager called InForce for firms to make mutually agreeable changes to collateral legal documentation terms. The beta version of the new service is expected to be available in Q2.
This has the potential to change the process of modifying legal documentation on the same scale that Acadia’s margin messaging service changed the OTC bilateral margin call and collateral pledge process. InForce enables users to electronically propose and accept changes to operating parameters in legal agreements directly with their counterparties.
In the right situation, namely when changing operating parameters such as Threshold, MTA or other collateral documentation terms, Acadia’s solution is significantly cheaper and faster than the traditional manual method of modifying existing collateral documentation.
Firms using InForce no longer need to engage their attorneys or paralegals – or outside counsel – to change a collateral documentation term and then wait weeks for the documentation to be exchanged, negotiated, and agreed (or not). The collateral documentation term change becomes live the instant a firm’s counterparty approves the proposed amendment.