Collateral Interest Payments Automated
TriOptima has extended its collaboration with AcadiaSoft to automate monthly collateral interest payments, making trade processing more efficient for over-the-counter (OTC) market participants.
According to International Swap Dealers Association (ISDA) data, cash collateral accounts for approximately 70% of all collateral exchanged for non-cleared derivatives, equivalent to $1.3 trillion in 2019 alone. A significant proportion of this market still relies on email and manual reconciliation to manage the interest process. Now, with TriOptima’s expanded support for AcadiaSoft’s new interest payments messaging, the wider industry can benefit from increased efficiencies.
“Our clients are aiming to automate large parts of their collateral management lifecycle as they prepare for upcoming phases of the uncleared margin rules (UMR),” said Neil Murphy, Business Manager at TriOptima. “Enabling clients to process interest in an efficient way, that allows reconciliation of underlying balances and automated matching, is part of that process. triResolve Margin connects more than 200 counterparties to the AcadiaSoft network; hence this collaboration automatically provides the wider market with improved post-trade processing capabilities.”
“We’re excited to extend our work with TriOptima to offer payment matching functionality to our mutual clients,” said Mark Demo, Head of Community Development at AcadiaSoft. “It’s another step toward complete collateral process automation and will help more firms reduce the amount of time required to complete their monthly cash collateral interest process. It also builds on our goal of increased network connectivity across the industry.”
TriOptima is a part of CME Group.
Source: CME Group
Phase 5 of the uncleared margin rules came into effect on 1 September.
Triparty repos can be executed across U.S. Treasury securities to central clearing.
Traders on EQONEX will be able to use US dollars, USD Coin and Bitcoin as margin for derivatives trading.
DTCC’s Margin Transit Utility simplifies the transfer of collateral.
Smaller entities come into scope in phase five of the uncleared margin regulations on September 1.