Data automation platform Xceptor has partnered with industry margin hub AcadiaSoft to launch a new post-trade service, called Relay, which aims to automate margin calls transactions currently processed by email through the MarginSphere platform.
Relay will most likely be likely available as a premium service on AcadiaSoft, the industry-backed margin hub that represents a collaborative response to new rules that place margin requirements on uncleared derivatives. It will leverage data capture capabilities of Xceptor to automatically recognise, capture and process data from counterparties outside the existing AcadiaSoft network.
The service is expected to support all 26 banks posting initial and variation margin on their uncleared exposures. The industry expects increases in margin volumes triggered by the introduction of regulations related to margin requirements for Uncleared OTC Derivatives.
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Unique proposition to the hub users
The service adds a new dimension to the margin hub, which allows market participants to communicate on derivatives exposures and manage commitments and adjustments between counterparties. It will speed up the process and remove the burden of manual processing from customers, allowing greater volumes of margin calls to be processed without additional FTE requirements.
AcadiaSoft community has grown to over 250 member firms exchanging more than $200 billion of collateral on a daily basis. The company’s growth is driven by regulatory changes in the derivatives industry that is increasing the demand for automated and verifiable collateral management.
Chris Walsh, CEO of AcadiaSoft, said: “We are thrilled to partner with Xceptor to provide the Relay service to our AcadiaSoft Hub community. Xceptor’s world-class automation capabilities enable clients to quickly and efficiently onboard Hub services and automate counterparty relationships.”
Andrew Kouloumbrides, CEO of Xceptor, added: “We are delighted to be working with AcadiaSoft to develop this new service to complement their existing market-leading product.” said “This service will mitigate the impact of incoming regulations and the subsequent expected increase in process volumes; we are therefore incredibly proud to be working with AcadiaSoft to bring a solution to market that will relieve this impending burden on the back office”.