Quantile Partners with AcadiaSoft on Risk Reduction Initiative11.15.2016
AcadiaSoft – London and New York – Quantile Technologies Limited (“Quantile”), a derivatives risk optimisation firm, and AcadiaSoft Inc. (“AcadiaSoft”), experts in collateral management automation, today announced the launch of a risk reduction service for the financial services industry. The partnership between the two firms will enable derivatives market participants to significantly reduce counterparty credit risk and associated resources such as initial margin, across a wide range of asset classes and financial instruments, including swaps, options and NDFs.
Quantile’s risk mitigation service, which deploys optimisation technology to generate transactions designed to reduce concentrations of counterparty risk, will be made available on AcadiaSoft Hub, the industry’s only straight-through margin processing solution. The service is targeted at the full array of derivatives market participants, and is expected to go-live before the end of this year, with initial adoption from the world’s major dealers.
“The agreement with Quantile we are announcing today instantly creates a market-leading risk optimization platform,” said Chris Walsh, CEO of AcadiaSoft. “The new service underscores AcadiaSoft’s pre-eminent position in financial services margin management and serves to enhance our role as the global margin data analytics hub.“
“Quantile’s partnership with AcadiaSoft provides a powerful union which combines AcadiaSoft’s margin data infrastructure with Quantile’s deep risk management expertise” said Stephen O’Connor, Chairman of Quantile. “Counterparty credit exposure between major market participants is a key driver of systemic risk and direct action to reduce those exposures using this service will deliver tangible benefits to the market.”
AcadiaSoft, Inc. is a financial industry collaborative that is uniquely focused on delivering margin automation and standards for counterparties engaged in collateral management. AcadiaSoft operates the AcadiaSoft Hub, an open access platform that allows market participants to communicate vital information on exposures, commitments and adjustments between counterparties in a complete, verifiable and secure manner.
Owned and backed by the investment of 16 major industry participants and infrastructures, the AcadiaSoft community has grown to over 250 member firms exchanging approximately $200B of collateral on daily basis. AcadiaSoft is headquartered outside of Boston in Norwell, MA and has offices in London, Tokyo and New York. For more information, see www.acadiasoft.com
The paper proposes a path forward for standard SLD documentation.
Exchange group’s crypto suite has had consistent volume and open interest growth.
The derivatives venue owned by FTX wanted to offer products that were not fully collateralized.
The proposed standard applies to the processing of give-ups and allocations.
The launch is a milestone in establishing €STR as the new benchmark risk-free rate.