ArcadiaSoft Looks to Ease Margin Requirements with New Platform

Tech vendor ArcadiaSoft has launched a new version of MarginSphere 2, its electronic margining platform for OTC derivatives, in order to help firms deal with incoming collateral rules for uncleared swaps.
By Joe Parsons(2147488729)
Tech vendor ArcadiaSoft has launched a new version of MarginSphere 2, its electronic margining platform for OTC derivatives, in order to help firms deal with the new collateral rules for uncleared swaps.

Taking effect next year, the platform will enable firms to exchange bilateral initial margin, automate processing of segregated collateral assets, verify disputes, and unbundle collateral movements into currency specific silos.

The release of the platform is the latest example of a wave of utilities, launched by market vendors, as the industry looks to meet tough new regulations.

“A lot of firms are just now waking up to the fact that margin volumes are about to explode, making traditional manual processing impractical and expensive,” says Chris Walsh, chief operating officer, AcadiaSoft. “MarginSphere 2 provides the industry with a standardized electronic solution well in advance of the September 2016 regulatory compliance deadline.”

The new regulations, promulgated by the Basel Committee on Banking Supervision and the International Organization of Securities Commissions (IOSCO), will take effect on September 1, 2016. Once implemented, it is expected that margin volumes will surge three to 10 times above current levels.

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