SmartStream Technologies announced the continuation of its partnership with Acadia for the processing and calculation of substitutions movements for TLM Collateral Management customers, and their associated counterparties. SmartStream’s TLM Collateral Management solution will work alongside Acadia’s Substitutions Workflow, available via its Margin Manager product.
The module will integrate with the workflow to automate the two-way communication and substitution coordination between counterparties. This allows users to manage substitution details throughout the workflow lifecycle in a standardized messaging format. This is invaluable for clients who are optimizing their collateral and who are often faced with a trade-off between doing so to reduce funding costs, and manual operational work to manage substitutions. The new module will provide exceptions-based processing and will promote STP for collateral substitutions.
Will Thomey, co-head of Business Development at Acadia, said in a statement: “Over the past two years we have made progress by transforming the way our clients manage their collateral. Helping customers optimize their collateral and better manage substitutions allows them to gain transparency and control over their risk exposure and costs. This is another example of serving our clients by continuing to invest in the collateral or margin workflow, whilst also meeting their business efficiency goals”.
Jason Ang, program manager for TLM Collateral Management at SmartStream, said in a statement: “Given the current emphasis for optimization in the market, we see that there will be an increase in substitutions requests. These requests traditionally have been a time-consuming process, but we have worked with Acadia to provide an automated solution to help our clients save time, reduce manual work, and automate the process. TLM Collateral Management coupled with Acadia’s Margin Manager provides integration with a powerful collateral management solution, and a user-friendly dashboard allowing for quick exception management, with a complete audit trail with final statements.”
The collaboration with Acadia and several Tier 1 financial institutions further validates the need for industry partners to shorten the settlement cycle, to help with industry efforts such as T+1 and Central Securities Depositories Regulation (CSDR), Ang said in the statement.