AcadiaSoft and Bloomberg automate ISDA SIMM margin calculations

AcadiaSoft announced that it is offering two new services to streamline the generation of inputs necessary for margin calculations using ISDA SIMM (Standard Initial Margin Model). Market participants that are in-scope for the calculation of initial margin for uncleared derivatives can access risk sensitivities calculation services both through AcadiaSoft and through Bloomberg as an integrated part of their Bloomberg workflow. AcadiaSoft CEO Chris Walsh said in a statement that such sensitivities calculation services meet a market demand for more automation of highly quantitative processes.

It’s the first risk service to be launched through AcadiaSoft’s partnership with Quaternion Risk Management. Sensitivities calculation is part of a growing suite of services designed to meet the operational and regulatory requirements of bilateral derivatives users. AcadiaSoft is developing these services with Quaternion and offering them through collaborations with enterprise technology providers like Bloomberg, gathering significant input from the major market participants currently subject to daily initial margin requirements.

The AcadiaSoft solution allows firms to take advantage of an automated process that begins with the submission of a trade file, incorporates a straight-through process on the AcadiaSoft Hub including AcadiaSoft’s Initial Margin Exposure Manager (IMEM) service, and culminates in a completed margin call.

The Bloomberg solution allows clients to use Bloomberg’s collateral management solution (BCOL) to generate CRIF files via Bloomberg’s SIMM calculation engine. AcadiaSoft clients can then route these CRIF files to the IMEM tool for reconciliation. Further integration is underway to establish an API-based straight-through workflow across the BCOL and IMEM solutions.

Both services are designed to meet the need for clients to calculate the risk sensitivities required for using ISDA SIMM, reducing IT build cost, freeing up quantitative resources for higher-value tasks, and reducing time spent developing and maintaining complex processes in-house.

Read the full release

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