TriOptima, a NEX Group business which lowers costs and mitigates risk in OTC derivatives markets, announces today that over 60 clients have adopted its triResolve Margin service in anticipation of the new variation margin regulations effective 1 March 2017.
These institutions include dealers, buy-side and corporate clients such as Mizuho Bank, Ltd., Sampo plc, GarantiBank International N.V., Eurofima, and The Governor and Company of the Bank of Ireland.
The new margin rules for non-cleared trades will increase the volume and complexity of margin calls. As of 1 March, the existing fragmented and manual solutions will not be equipped to meet the new demands. Unlike the initial margin rules that were introduced in September and are phased in over a period of time, the variation margin rules will be effective immediately and will affect the vast majority of firms trading OTC derivatives globally. As such, market participants are preparing now to ensure that they are compliant from day one.
Launched in June 2016, triResolve Margin brings the margin call process and portfolio reconciliation together to provide an exception-based, straight-through processing (STP) workflow, which enables firms to focus on compliance and counterparty exposure differences rather than manual operations. The company expects further adoption of the service in the coming months as a result of triResolve Margin’s rapid implementation time, and the impending deadline.
“The rapid growth in triResolve Margin clients is recognition that integration and automation of processes are essential in the new regulatory world,” said Raf Pritchard, CEO of triResolve. “We believe that client uptake will continue to grow beyond 1 March as firms identify the benefits of a centrally hosted service like triResolve Margin.”
triResolve Margin is a web-based collateral management service which provides an automated and exception based margin processing solution that integrates with the triResolve portfolio reconciliation service (used by over 1,800 firms). With complete dispute analytics and an out-of-the-box connection to the AcadiaSoft Hub, triResolve Margin facilitates a transparent STP that is critical given the increase in margin call volume and complexity that the new rules will generate.