In other FinTech news, SimCorp and Trading Screen form an alliance while Germany’s Triuva extends CACEIS agreement.
Hub Gains Six Firms Under Phase 2 of IM Rules
Collateral and margining solutions provider AcadiaSoft reports that six more “in-scope firms” under Phase 2 of the new initial margin (IM) rules have been integrated into the AcadiaSoft Hub for non-cleared derivatives.
“The additional firms chose to use the hub for IM in order to comply with the new rules, which became effective on September 1, 2017 under the new regulatory framework established by the Basel Committee on Banking Supervision (BCBS) and the International Organization of Securities Commissions (IOSCO),” according to a statement from AcadiaSoft.
“Now, all counterparty groups that are in-scope for the new rules are using the Hub for IM calculation and reconciliation, while nearly all are also using the Hub for IM margin call issuance and response,” according to AcadiaSoft. “The new regulatory framework requires a standard calculation of how much IM to exchange, which must be either schedule-based or based on an approved model, such as the ISDA SIMM, or Standard Initial Margin Model, calculation.”
The vendor also reports that in the two weeks since the Phase 2 deadline, “disparities between IM calculations by Phase 2 firms and their trading counterparties have been much smaller as compared to the phase 1 firms that came live under the rules a year earlier,” officials say.
“Day 1 average differences for Phase 2 firms were significantly reduced from Day 1 average differences for Phase 1 firms,” says Mark Demo, AcadiaSoft product director in a statement. “The Phase 2 firms have used their extra time wisely.”
In addition, as of September 1, 2018, AcadiaSoft notes that Phase 3 firms such as regional banks, pension funds and asset managers “will be required to post IM for all in-scope, non-cleared derivatives transactions under the new regulatory framework.”
The AcadiaSoft collaborative targets margin automation and standards for counterparties engaged in collateral management, officials say. The effort is owned and backed by the investment of 16 industry participants and infrastructures, and has more than 250 member firms exchanging approximately $200 billion of collateral daily. AcadiaSoft is headquartered near Boston in Norwell, Mass., and has offices in London, Tokyo and New York.
SimCorp & TradingScreen Want to Tackle Entire Trade Lifecycle
SimCorp, an investment management solutions and services vendor, and TradingScreen, an execution management system (EMS) provider, have a new strategic alliance to provide the buy-side with a new, combined offering that covers “the entire investment and trading lifecycle,” officials say.
“The new solution acts as a central repository for trading data and reporting, truly integrating the OMS and EMS, and tackling many of the pain points associated with current OEMS offerings in the market,” vendor officials say in a statement. “The solution meets the much-needed requirement for workflow simplification in the front office by enabling institutional investors to consolidate multiple execution platforms into one integrated solution across asset classes.”
The solution focuses on “existing difficulties concerning slow order entry, data sharing, automation and transparency faced by portfolio managers, traders and compliance officers,” officials say. “This is an area that continues to be a key priority for institutional investors in light of regulations such as MiFID II. In a recent InvestOps European buy-side survey commissioned by SimCorp, 46 percent of firms stated increased automation as one of the top strategic objectives for 2017/18.”
The two vendors will be working with their client bases to “enhance the front office offering from a workflow, connectivity and data standpoint,” officials say.
“The combination of our TradeSmart EMS with the SimCorp Dimension OMS delivers on this promise, with a front to back integration and rapid implementation owing to TS’ industry leading SaaS deployment,” says Varghese Thomas, chief strategy officer, TS, in a statement.
Germany’s Triuva to Use CACEIS Cross-Border Services
Frankfurt-based Triuva (Kapitalverwaltungsgesellschaft mbH), a manager of structured real estate products for institutional investors in Germany, is extending its existing partnership with CACEIS, the asset servicing banking group of Crédit Agricole, which is dedicated to institutional and corporate clients.
“For its international business needs, CACEIS in Luxembourg now provides depository services for the real estate funds of Triuva’s Luxembourg-based fund management entity,” officials report. “CACEIS also provides transfer agency services and handles the passive accounting needs. The funds were successfully migrated in the second quarter of 2017.” Triuva has assets under management (AUM) of around €10 billion.
“Our objective was to rationalize fund administration, accounting and transfer agency service providers. CACEIS is able to meet all our servicing needs through the various jurisdictions where we operate, so the decision to extend an already strong partnership was a logical step. The close professional relationship we enjoy with CACEIS in Germany makes us confident that we have selected the best partner to handle our cross-border business needs,” says Amos Schelling, managing director of TRIUVA Luxembourg in a statement.
CACEIS, which has offices across Europe, North America and Asia, offers services covering execution, clearing, depositary and custody, fund administration, middle office outsourcing, forex, securities lending, fund distribution support and issuer services.
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