Acadia Market Insights - March 2022
Welcome!
Welcome to the March issue of Acadia's Market Insights - our bi-monthly community newsletter.
Read on to discover updates from the January - March period including a round up of upcoming webinars and recent commentary about the Uncleared Margin Rules. This issue is also filled with the latest news, product updates, podcasts and more. We hope that you find these insights useful and welcome any feedback on topics for future issues.
Keep scrolling to stay informed and subscribe now to have the latest issue sent directly to your inbox every other month and ensure you never miss the latest insights.
Upcoming Webinars
UMR Phase 6 - One Deadline You Can’t Miss
March 9 - 11am EST/4pm GMT/ 5pm CET
This FTF webinar, sponsored by Acadia, will feature industry experts discussing the impending deadline and the key metrics, legal matters and documentation requirements that need to be considered in advance of September 2022 deadline.
What’s new in Margin Manager: A guide to new workflows
March 30 - 10am EST/ 3pm GMT/ 4pm CET
Join product experts from Acadia as we discuss the benefits of standardizing your margin and payments workflow, leveraging your existing investment in Margin Manager. We will walk you through the new workflows and explain how to get started with the expanded functionality.
Recent Insights from the Acadia team
A Comprehensive Guide To Uncleared Margin Rules 2022
Approaching Phase 6 of Uncleared Margin Rules? View our comprehensive guide to UMR to find out everything you need to know about the rules and start your compliance journey.
Preparation for UMR Phase 6 in Japan
We recently published an article to guide our Japanese clients through the complexities of UMR. The article is written in Japanese.
Acadia Strengthens Partnership with KIS Pricing
Acadia announced an expanded partnership with Korean bond pricing company KIS Pricing, with the reseller agreement giving Korean clients access to Acacia’s suite of UMR services.
Ahead of the Curve Podcast
Ep 10: Open-Source Technology – What role can it have in the risk industry?
Join Acadia’s CEO Chris Walsh, Co-Head of Quantitative Services Roland Lichters, and Partner Scott Sobolewski as they sit down to dig deeper into the importance of open-source technology in derivatives pricing and risk analysis.
Ep 11: Moving forward with Backtesting: Unravelling European requirements for IM model validation
Join Deepak Sitlani, Partner at Linklaters and Robert Kirchner, European Head of Acadia’s Quantitative Services as they discuss initial margin model validation for firms under EMIR regulation.
Quaternion Quantitative Services
Quaternion Quant Services, a division of Acadia, offers our client base comprehensive Risk consulting in all areas of derivatives analytics. We support our clients on current issues such as compliance with Commodity Futures Trading Commission (CFTC) capital rules for buy side firms, as well as IM Model Validation requirements for Phase 5 and 6 firms.
We also help our clients save cost and capital, by modernizing their valuation and risk infrastructure with the aim to prevent capital “leakage” and significantly reduce structural complexity and increase performance.
While the consultation period for the EBAs RTS on Initial Margin Model Validation has ended, the industry is awaiting further refinement and adjustment to the rules laid out in the RTS. Even though it was viewed critically by many market participants it is also acknowledged by the industry that the broad picture drafted by the EBA will most probably find its way into legislation. View our resources and publications as we disentangle the RTS in the context of current legislation and understand what actions your firm should take.
Join our Agreement Manager Working Group
Having started the digitization projects for our early adopter clients, we are re-instating our Agreement Manager Working Group. Aimed primarily at collateral managers, Margin Manager users or those working with legal documentation, we will cover the developments that are being made in Agreement Manager. We aim to walk through the link between digitized data and existing operational Margin Agreements in Agreement Manager underpinning other Acadia products such as Margin Manager & Risk Manager, review the latest additions to the Legal Agreement data model to allow for digitization of GMRA & MFSTA documentation and review a few new ideas for future development of the Agreement Manager product. Our first meeting will take place on Wednesday, March 23rd at 10am EST. Please register to join us using the button below.
On Demand Webinars
Top Tips for UMR Phase 6: Recommendations from Phases 1-5
We canvassed our clients from Phase 1 through Phase 5 of uncleared margin rules to ask them what advice they would pass on if they had to repeat the regulatory program. We have pulled together their top tips and best ideas to help ease the compliance journey in this one-hour webinar.
KISP-Acadia Webinar: Strategies and Solutions for Compliance with UMR - A Korean Perspective
This webinar covers what you need to know about the Uncleared Margin Rules and offers strategies and solutions for companies subject to regulations. The webinar was conducted in Korean.
Navigating Regulatory Initial Margin Compliance: A Taiwanese Perspective
This webinar, co-hosted with PwC Legal, focussed on the unique challenges that the Uncleared Margin Rules pose to the Taiwanese financial community. Although not directly effected by UMR, many financial institutions still have to overcome compliance challenges posed by the rules in order to continue trading with overseas counterparties. The webinar was conducted in Chinese.
Community Update
We are continually adding new clients to our community. If you would like to discover if some of your counterparties are on our network please reach out to our Onboarding team.
Additionally, if you would like to leverage new workflows in Margin Manager like Payments, Repos and TBAs, contact onboarding@acadia.inc to expand your own STP network.
Product Updates
Risk Suite Developments
Pre-Trade Analytics
Acadia is developing a pre-trade IM calculation service that will provide a real time view of the impact of selected trades on your initial margin exposure at a Counterparty and Group level, with direct integration to IM Threshold Monitor. Find out more here.
CRIF Match
CRIF Match utilizes key trade data provided in your raw Common Risk Interchange Format (CRIF) files to perform a trade match - useful for firms who want to use IMEM but are not TriResolve clients.
Capital Calculation Service
Acadia’s Capital Calculation Service provides a cost-effective solution for the generation of daily regulatory capital metrics in a timely and repeatable process. We provide the market data and understanding of the complex requirements so that you don’t have to. Find out more here.
Workflow Suite Developments
Payments Manager
Leveraging Margin Manager connectivity, Payments Manager enables bilateral confirmation of derivatives trades and securities payments. We are continually expanding the products we support and have recently brought Swap Payment and Securities Collateral Payment Matching service live. Find out more here.
Agreement Suite Developments
Agreement Manager
We are excited to announce a new development within Agreement Manager. Some counterparties have digitized their legal pdf ISDA VM & IM documents in Agreement Manager and we expect many more counterparties to be joining the platform in the future. We will be giving you permission to be able to review the digitized data that your counterparty would like to share with you. All the digitized data attributes that can be extracted from a PDF legal document will now be available in a new Agreement Viewer. Going forward this data can become the golden source record feeding all your underlying systems. The new development further enhances the benefits provided by digitizing your documents into Agreement Manager by increasing transparency and control and helping to eliminate disputes with improved data quality, hosted within a shared, fully digitized environment. If you would like to discuss this further or would like to know more about your counterparty sharing this information with your team, please contacts us.
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