Charles River and AcadiaSoft form business alliance to expand STP support for OTC and exchange traded derivatives
Automated margin call communication expands Charles River IMS collateral management capabilities
January 10, 2019
Boston and New York — January 10, 2019 — Charles River Development, a State Street Company, and AcadiaSoft Inc. have announced a business alliance to automate communication of margin calls and collateral estimates between counterparties in the Charles River Investment Management Solution (Charles River IMS) for OTC and exchange-traded derivatives.
EMIR, Dodd-Frank, OSFO-BSIF, and other regulations based on the Basel/IOSCO policy framework have increased collateral and margin requirements for non-centrally cleared derivatives. This has also led to a significant increase in margin call volumes.
AcadiaSoft’s MarginSphere®, part of the AcadiaSoft Hub, helps streamline and automate the margin process within Charles River IMS, connecting market participants and service providers to simplify workflows for all parties engaged in collateral management – buy and sell side firms, fund administrators, and clearing firms.
Expanded collateral management capabilities help portfolio managers and traders obtain real time pre-trade margin estimates for exchange traded futures, options on futures, cleared credit and rates as well as un-cleared OTC derivatives. For middle office teams, Charles River automates the collateral life cycle, providing accurate counterparty contract data and a central workbench to manage all margin call workflows.
“Manual processing is error-prone, costly and is too unwieldy and risky to support current and emerging regulations,” said Scott Fitzpatrick, Director Collateral Business and Client Operations of AcadiaSoft. “MarginSphere® provides a central margin service for the industry that replaces email and other manual, proprietary practices with an automated, standard and verifiable electronic process for all parties.”
“Our partnerships with leading providers of collateral management services help our clients keep pace with new regulations governing OTC derivatives,” said John Plansky, CEO, Charles River. “With derivatives seeing increased use by institutional portfolio managers, the alliance with AcadiaSoft helps our clients seamlessly support the full lifecycle of these instruments.”
Charles River was acquired by State Street Corporation in October 2018 and the combined companies are developing the industry’s first ever global front-to-back investment servicing platform**. This platform, supported by deep enterprise data management capabilities, will enable investment workflows, provide advanced data aggregation, analytics and compliance tools, and connect and exchange data with other industry platforms and providers. Today’s announcement with AcadiaSoft demonstrates the traction the platform is receiving from key clients and partners who want to access the enhanced trading functionality and services as well as deeper pools of liquidity.
AcadiaSoft, Inc. is the leading industry provider of risk and collateral management services for the non-cleared derivatives community. The AcadiaSoft Hub encompasses a suite of applications and analytics that enable and measure the complete STP workflow from CSA agreement management, risk services, margin and collateral management through to settlement. Backed by 17 major industry participants and market infrastructures, AcadiaSoft is used by a community of more than 650 firms exchanging approximately $400B of collateral on daily basis via its margin automation services. AcadiaSoft is headquartered in Norwell, MA and has offices in London, New York and Tokyo. For more information visit acadiasoft.com. Follow us on Twitter and LinkedIn.
AcadiaSoft® is a registered trademark of AcadiaSoft, Inc.
About Charles River, a State Street Company
Charles River Development, a State Street Company, enables sound and efficient investing across all asset classes. Investment firms in more than 40 countries use Charles River IMS to manage more than US$25 Trillion in assets in the institutional investment, wealth management and hedge fund industries. Our Software as a Service-based solution (SaaS) is designed to automate and simplify investment management on a single platform – from portfolio management and risk analytics through trading and post-trade settlement, with integrated compliance and managed data throughout. Headquartered in Burlington, Massachusetts, we support clients globally with more than 750 employees in 11 regional offices. For more information, please visit www.crd.com.
About State Street Corporation
State Street Corporation (NYSE: STT) is one of the world’s leading providers of financial services to institutional investors, including investment servicing, investment management and investment research and trading. With $33.99 trillion in assets under custody and administration and $2.81 trillion* in assets under management as of September 30, 2018, State Street operates in more than 100 geographic markets worldwide, including the US, Canada, Europe, the Middle East and Asia. For more information, visit State Street’s website at http://www.statestreet.com/platformforgrowth.
* This figure is presented as of September 30, 2018 and includes approximately $28 billion of assets with respect to SPDR products for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) acts solely as the marketing agent. SSGA FD and State Street Global Advisors are affiliated.
**offered by a single provider
The whole or any part of this report may not be reproduced, copied or transmitted, or any of its contents disclosed to third parties without State Street’s express written consent.
Investing involves risk including the risk of loss of principal.
The material presented herein is for informational purposes only. The views expressed herein are subject to change based on market and other conditions and factors. The opinions expressed herein reflect general perspectives and information and are not tailored to specific requirements, circumstances and / or investment philosophies.
Expiration Date: December 17, 2019
©2019 State Street Corporation – All Rights Reserved
State Street Corporation, One Lincoln St, Boston MA 02111