Capitolis announced a partnership that combines its proprietary technology platform with AcadiaSoft’s risk analytics and repository of industrywide margin data. It’s expected to enable greater capital optimization for financial institutions and drive down costs in the industry.
Using the solution, financial institutions can eliminate large and unnecessary positions and find the most suitable party to hold the remaining positions. This means that firms can more efficiently allocate their capital — as required by the evolving regulatory landscape — and has the potential to materially impact returns on capital, market liquidity and access to markets.
The impact of upcoming regulations like SA-CCR (Standard Approach to Counterparty Credit Risk) will have a major effect on the capitalization of financial institutions. AcadiaSoft’s recent acquisition of Quaternion, a specialist risk management firm, further deepens the expertise of this unique partnership to develop services that firms will be able to deploy to gain immediate and lasting optimization results.