Northern Trust Collateral Optimization Capability Helps Investors Meet UMR Obligations

Rhea-AI Summary

Northern Trust (Nasdaq: NTRS) has launched an automated solution for initial margin calculation to support clients in complying with regulations for over-the-counter (OTC) derivatives. This initiative precedes the implementation deadline for Uncleared Margin Rules (UMR) and is part of a collaboration with Acadia. The new technology aims to enhance efficiency by automating margin calculations, offering clients optimal asset identification for meeting margin obligations and improving investment performance. This solution is available globally and integrates with Northern Trust's collateral management solutions.

Positive

• Launch of an automated initial margin calculation solution enhancing compliance with OTC derivatives regulations.
• Partnership with Acadia streamlines margin management and supports clients in UMR compliance.
• Advanced technology allows for automation of previously manual processes, improving processing speed and accuracy.
• Comprehensive collateral and liquidity management solutions available globally.

Negative

• None.

Integration with Acadia Drives Efficiency for OTC Derivatives

CHICAGO--(BUSINESS WIRE)-- Northern Trust (Nasdaq: NTRS) has launched an automated solution for initial margin calculation to help asset manager and asset owner clients comply with global regulations governing trading of over-the-counter (OTC) derivatives.

The solution, made available to clients in advance of a key deadline for implementation of Uncleared Margin Rules (UMR), was developed as part of Northern Trust’s integration of Acadia’s margin management solutions and fully complements Northern Trust’s full suite of collateral and OTC processing capabilities.

“Our integrated global architecture and investments in core technology allowed us to build a unified solution for all collateral clients and is a great example of our technology vision at work,” said Pete Cherecwich, President of Corporate & Institutional Services at Northern Trust. “By investing the time and technology up front, we can deliver solutions that offer agility, automation, and long-term value.”

Through its partnership with margin and risk management expert Acadia, Northern Trust offers market-approved, automated support for an independent calculation of initial margin to help investors in OTC derivatives meet complex UMR requirements. Leveraging algorithmic technology to identify the best assets available to meet regulatory eligibility requirements, the solution identifies optimal assets to be deployed to meet margin obligations – helping our clients maximize investment performance.

“A key differentiating feature of this initiative is that our investment in technology architecture allowed us to identify, integrate, test and launch the solution in full ahead of the regulatory deadline,” said Nadia Ivanova, Head of C&IS Business Services and North America Asset Servicing Chief Operating Officer at Northern Trust. “By pairing this solution with our other derivatives enhancements, we’ve been able to automate previously manual processes for faster processing and greater accuracy.”

These advanced capabilities are part of Northern Trust’s comprehensive range of collateral, derivatives and liquidity management solutions. Clients can access these services globally, either on a component basis – to complement their current in-house practices – or as part of a broader suite of collateral management solutions.

About Northern Trust

Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of wealth management, asset servicing, asset management and banking to corporations, institutions, affluent families and individuals. Founded in Chicago in 1889, Northern Trust has a global presence with offices in 22 U.S. states and Washington, D.C., and across 23 locations in Canada, Europe, the Middle East and the Asia-Pacific region. As of June 30, 2021, Northern Trust had assets under custody/administration of US$15.7 trillion, and assets under management of US$1.5 trillion. For more than 130 years, Northern Trust has earned distinction as an industry leader for exceptional service, financial expertise, integrity and innovation. Please visit our website or follow us on Twitter.

Northern Trust Corporation, Head Office: 50 South La Salle Street, Chicago, Illinois 60603 U.S.A., incorporated with limited liability in the U.S. Please read our global and regulatory information.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210928005357/en/

Media Contacts

Europe, Middle East, Africa & Asia-Pacific:

Camilla Greene

+44 (0) 20 7982 2176

Camilla_Greene@ntrs.com



Marcel Klebba

+ 44 (0) 20 7982 1994

Marcel_Klebba@ntrs.com

US & Canada:

John O’Connell

+1 312 444 2388

John_O’Connell@ntrs.com

http://www.northerntrust.com

Source: Northern Trust Corporation

FAQ

What is the new solution launched by Northern Trust (NTRS)?

Northern Trust has launched an automated solution for initial margin calculation to help clients comply with regulations for over-the-counter (OTC) derivatives.

How does the Northern Trust solution assist with Uncleared Margin Rules (UMR)?

The solution supports clients by automating the calculation of initial margins, facilitating compliance with UMR requirements.

What technology does Northern Trust's new solution utilize?

The solution leverages algorithmic technology to identify optimal assets for meeting regulatory margin obligations.

What benefits does Northern Trust's partnership with Acadia provide?

The partnership enables streamlined margin management and offers automated support for independent initial margin calculation.

When is the regulatory deadline for implementing Uncleared Margin Rules?

The automated solution was developed ahead of the key deadline for implementation of Uncleared Margin Rules (UMR).