TriOptima Extends Collaboration with AcadiaSoft to Improve Industry Standard for Collateral Interest Payments Processing

Rhea-AI Summary

TriOptima has expanded its collaboration with AcadiaSoft to automate monthly collateral interest payments for OTC market participants. This move could enhance efficiency in a market where cash collateral reached approximately $1.3 trillion in 2019. The collaboration aims to facilitate automation in collateral management, which is crucial for adhering to upcoming uncleared margin rules. TriOptima's network connects over 200 counterparties, improving post-trade processing capabilities and potentially reducing the time needed for cash collateral interest reconciliation.

Positive

• Enhanced collaboration with AcadiaSoft to automate monthly collateral interest payments.
• Supports clients in automating collateral management, preparing for upcoming uncleared margin rules.
• Over 200 counterparties connected to AcadiaSoft network, improving post-trade processing.

Negative

• None.

LONDON and NEW YORK, Sept. 2, 2020 /PRNewswire/ -- TriOptima has extended its collaboration with AcadiaSoft to automate monthly collateral interest payments, making trade processing more efficient for over-the-counter (OTC) market participants.

According to International Swap Dealers Association (ISDA) data, cash collateral accounts for approximately 70% of all collateral exchanged for non-cleared derivatives, equivalent to $1.3 trillion in 2019 alone.  A significant proportion of this market still relies on email and manual reconciliation to manage the interest process.  Now, with TriOptima's expanded support for AcadiaSoft's new interest payments messaging, the wider industry can benefit from increased efficiencies.

"Our clients are aiming to automate large parts of their collateral management lifecycle as they prepare for upcoming phases of the uncleared margin rules (UMR)," said Neil Murphy, Business Manager at TriOptima. "Enabling clients to process interest in an efficient way, that allows reconciliation of underlying balances and automated matching, is part of that process. triResolve Margin connects more than 200 counterparties to the AcadiaSoft network; hence this collaboration automatically provides the wider market with improved post-trade processing capabilities."

"We're excited to extend our work with TriOptima to offer payment matching functionality to our mutual clients," said Mark Demo, Head of Community Development at AcadiaSoft. "It's another step toward complete collateral process automation and will help more firms reduce the amount of time required to complete their monthly cash collateral interest process.  It also builds on our goal of increased network connectivity across the industry."

TriOptima is a part of CME Group. For more information on TriOptima offerings, visit here. For more information on triResolve Margin's collateral management platform, click here. For more information on AcadiaSoft's Margin Manager platform, click here.

About CME Group
As the world's leading and most diverse derivatives marketplace, CME Group (www.cmegroup.com) enables clients to trade futures, options, cash and OTC markets, optimize portfolios, and analyze data – empowering market participants worldwide to efficiently manage risk and capture opportunities. CME Group exchanges offer the widest range of global benchmark products across all major asset classes based on interest rates, equity indexes, foreign exchange, energy, agricultural products and metals.  The company offers futures and options on futures trading through the CME Globex® platform, fixed income trading via BrokerTec and foreign exchange trading on the EBS platform.  In addition, it operates one of the world's leading central counterparty clearing providers, CME Clearing.  With a range of pre- and post-trade products and services underpinning the entire lifecycle of a trade, CME Group also offers optimization and reconciliation services through TriOptima, and trade processing services through Traiana.

CME Group, the Globe logo, CME, Chicago Mercantile Exchange, Globex, and, E-mini are trademarks of Chicago Mercantile Exchange Inc.  CBOT and Chicago Board of Trade are trademarks of Board of Trade of the City of Chicago, Inc.  NYMEX, New York Mercantile Exchange and ClearPort are trademarks of New York Mercantile Exchange, Inc.  COMEX is a trademark of Commodity Exchange, Inc. BrokerTec, EBS, TriOptima, and Traiana are trademarks of BrokerTec Europe LTD, EBS Group LTD, TriOptima AB, and Traiana, Inc., respectively.  Dow Jones, Dow Jones Industrial Average, S&P 500 and S&P are service and/or trademarks of Dow Jones Trademark Holdings LLC, Standard & Poor's Financial Services LLC and S&P/Dow Jones Indices LLC, as the case may be, and have been licensed for use by Chicago Mercantile Exchange Inc.  All other trademarks are the property of their respective owners.

About AcadiaSoft
AcadiaSoft, Inc. is the leading industry provider of risk and collateral management services for the non-cleared derivatives community. AcadiaPlus is a new generation open platform that provides the sell-side, the buy-side and fund administrators with specialist applications and a third-party partner ecosystem for the straight-through processing of the entire risk mitigation lifecycle. Backed by 16 major industry participants and market infrastructures, AcadiaSoft is used by a community of more than 1,100 firms exchanging approximately $700B of collateral on a daily basis via its margin automation services. AcadiaSoft is headquartered in Norwell, MA, and has offices in London, New York and Tokyo. For more information, visit acadiasoft.com. Follow us on Twitter: https://twitter.com/AcadiaSoft_ and LinkedIn: https://www.linkedin.com/company/acadiasoft-inc/.

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SOURCE CME Group

FAQ

What is the significance of TriOptima's collaboration with AcadiaSoft for CME?

The collaboration aims to automate monthly collateral interest payments, enhancing processing efficiency for OTC market participants.

How much cash collateral was exchanged in the market in 2019?

Approximately $1.3 trillion in cash collateral was exchanged in 2019, according to ISDA data.

What are the benefits of the new interest payments messaging from TriOptima and AcadiaSoft?

The new messaging enhances automation, allowing for efficient reconciliation of balances and reducing the time needed for interest processing.

How does this collaboration impact TriOptima's clients?

It helps clients automate significant parts of their collateral management lifecycle, preparing them for upcoming regulatory requirements.