Lombard Risk Management and AcadiaSoft are collaborating on electronic collateral messaging. Lombard Risk COLLINE has been enabled for collateral messaging with two-way integration with AcadiaSoft’s MarginSphere using the Lombard Risk REFORM messaging engine.
COLLINE, which Lombard Risk says more than 50 clients use to manage their collateral, covers margin management and related workflow for OTC, cleared and listed derivatives and covers repos, securities lending and collateral optimization across multiple asset classes.
MarginSphere is a margin confirmation community where counterparties engaged in collateral management electronically confirm margin calls, substitutions and interest statements.
Click here for a video with Chris Walsh, COO of AcadiaSoft, on GCTV discussing MarginSphere.
Electronic messaging systems automate the interaction between financial institutions on their margining requirements and benefits including simplified and scalable operations; straight-through processing and automated responses; increased security; seamless interaction; reduced operational risk; and comprehensive audit trail, according to the firms.
“Electronic messaging and the progressive elimination, or reduction in the reliance on, emails for communicating margin calls and other events like interest calculations and collateral substitution is a key step towards safer and more efficient markets, says John Wisbey, CEO of Lombard Risk.
Craig Welch, CEO of AcadiaSoft, adds: “MarginSphere provides industry standard automation of the margin process a critical element of Dodd-Frank and Basel III risk management infrastructures. Regulation is a high-focus business area for Lombard Risk as well, which made them such good partners in this project.”
The firms say two Tier 1 European banks soon will deploy the combined COLLINE and MarginSphere solution.
(CG)