Buy-side firms sign up for Acadiasoft online margin confirmation community
07 February 2012 | 3394 views | 0
AcadiaSoft, Inc. today announced that Bluebay Asset Management, Cheyne Capital Management and Goldman Sachs Asset Management (GSAM) will be live on MarginSphere, AcadiaSoft's online community for margin automation in the OTC derivatives market, in the first or second quarter of 2012.
Late last year, AcadiaSoft announced that Deutsche Bank, Goldman Sachs, HSBC and J.P. Morgan were among the first sell-side firms to go live on the solution.
MarginSphere is a quickly growing margin confirmation community that helps moderate risk and decrease inefficiencies by providing a central and transparent infrastructure where counterparties engaged in collateral management can electronically confirm, manage and track margin calls. Through this process, the offering mitigates operational risk, reduces costly errors and helps achieve straight through processing. The product's web-based distribution channel enables dealers and investors to manage all aspects of collateral communications, while providing these market participants with the tools to view and make real-time adjustments to their collateral exposures and commitments. MarginSphere also addresses regulatory requirements by providing a full audit trail of collateral management activities.
"AcadiaSoft allows us to view and respond to our margin calls from one online location, benefiting the efficiency and transparency of our daily operations," said James Dawson, Cheyne Capital Management.
"Counterparty credit risk has emerged as one of the most pressing issues amongst market participants, regulators, agencies and lawmakers," commented Craig Welch, co-founder and CEO of AcadiaSoft. "As a result, firms have embraced collateral management as the standard for risk mitigation and are therefore demanding increased efficiency and transparency in this area. The rapid growth of the MarginSphere community underscores and validates the critical need for a solution like this, and we look forward to adding more members in the coming months."
MarginSphere was developed through coordinated efforts between AcadiaSoft, a number of the industry's leading banks and ISDA, to ensure that functionalities necessary to address operational efficiencies, manage risk and address regulatory requirements were prioritized.