LCH SwapAgent connects to AcadiaSoft Hub

The connection between LCH’s SwapAgent to AcadiaSoft Hub targets the simplification of the margining process following the implementation of non-cleared margin rules in September.
By Paul Walsh
LCH’s SwapAgent service will supply risk calculation data to the AcadiaSoft Hub following the planned launch of LCH SwapAgent in the first half of 2017.

Connecting LCH SwapAgent to the AcadiaSoft Hub aims to further streamline the margining process for banks currently using the hub to comply with non-cleared margin rules, which came into effect in the US and Japan on 1 September 2016.

“Our goal is to bring efficiency to the non-cleared market and this partnership is an important milestone,” said Nathan Ondyak, global head of SwapAgent at LCH.

“Coupling LCH’s global reach and proven track record in valuation and risk management with AcadiaSoft’s expertise and position in non-cleared market infrastructure is a major step to achieving that goal.”

Currently, AcadiaSoft’s users calculate their own trade level risk factors for submission to the hub for reconciliation between the two counterparties and completion of the initial margin calculation.

Using independently calculated risk factors from SwapAgent aims to eliminate trade level disputes and increase efficiency of the margining processes.

Firms can choose to use LCH calculations to either drive their primary calculation or as a tool for comparison and dispute resolution.

“This new service will simplify the margining process for firms using AcadiaSoft to comply with the non-cleared margin rules, without having to significantly overhaul their existing processes,” said Chris Walsh, CEO at AcadiaSoft.

“The addition of LCH calculations expands the Hub’s content and its function as a one-stop shop for collateral and risk services.”