The London Stock Exchange Group has purchased a minority stake in AcadiaSoft to further streamline margin calculations in the non-cleared derivatives market.
Based in Boston, and with offices in London, Tokyo and New York, AcadiaSoft is focused on delivering margin automation and standards for counterparties engaged in collateral management. Its technogoly suite currently serves over 700+ firms automating the margin process of 200,000+ agreements and moving $400bn+ collateral daily.
Along with the investment, AcadiaSoft has also teamed up with LCH SwapAgent to develop new products which will automate and standardize the margin process for non-cleared derivatives.
As part of the deal, LCH SwapAgent will be integrated into the AcadiaSoft Hub with a single interface, dashboard and point of control. In the future, AcadiaSoft plans to help extend the use of SwapAgent across the broader market, including buy-side firms.
LCH SwapAgent went live in November 2017 with the support of 15 dealers, processing, margining and settling trades without requiring novation to a central counterparty or a change to the underlying trade terms.
“The acquisition of a stake in AcadiaSoft underlines our strategy to expand further into the non-cleared space, an area in which AcadiaSoft has considerable experience,” said LCH Group CEO and LSEG Executive Committee Member, Daniel Maguire.
“The non-cleared margin rules continue to impact the dealer and buy-side community, and it is crucial that integrated services are available to support market participants in reducing risk while maximising their capital and operational efficiencies. LCH SwapAgent brings our expertise in managing risk and increasing operational resilience to the bilateral market and we are delighted to be collaborating with AcadiaSoft to foster further innovation in this market.”
AcadiaSoft is owned by a consortium of 13 banks and three major industry infrastructure providers including NEX Group, The Depository Trust & Clearing Corporation (DTCC), Euroclear, and now LSEG.
Global bank investors include BofA Merrill Lynch, Barclays, BNP Paribas, Citi, Credit Suisse, Deutsche Bank, Goldman Sachs, HSBC, J.P. Morgan, Morgan Stanley, Societe Generale, State Street and UBS.
Earlier this year, AcadiaSoft launched a new platform to provide end-to-end collateral management for all buy-side firms. Its new web-based platform covers all agreement types – OTC Bilateral, OTCCleared, Exchange Traded Derivatives, Repo, MSFTA, Securities Lending and Borrowing and lends itself to asset managers, hedge funds and corporates who have regulatory and operational requirements to automate their internal collateral management process.
Copyright © 2018 RegTech Analyst
Copyright © 2018 RegTech Analyst
