Charles River Development, a State Street Company, and AcadiaSoft have announced a business alliance to automate communication of margin calls and collateral estimates between counterparties in the Charles River Investment Management Solution (Charles River IMS) for OTC and exchange-traded derivatives.
EMIR (European Market Infrastructure Regulation), Dodd-Frank, OSFI-BSIF (Office of the Superintendent of Financial Institutions in Canada), and other regulations based on the Basel/IOSCO policy framework have increased collateral and margin requirements for non-centrally cleared derivatives. This has also led to a significant increase in margin call volumes.
Expanded collateral management capabilities help portfolio managers and traders obtain real-time pre-trade margin estimates for exchange-traded futures, options on futures, cleared credit and rates as well as un-cleared OTC derivatives. For middle office teams, Charles River automates the collateral life cycle, providing accurate counterparty contract data and a central workbench to manage all margin call workflows.