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BNY Mellon develops end-to-end collateral solution using AcadiaSoft

Trading Desk
(Image credit: (Thomas Lohnes/Getty Images News))

BNY Mellon is providing clients access to AcadiaSoft’s Initial Margin Risk Suite, enabling full outsourcing of initial margin calculations, reconciliation and message handling for participants in buy-side derivatives markets. This is the first complete collateral solution on the market and means clients can now turn to BNY Mellon to meet all their obligations under Phases 4 and 5 of the non-cleared margin rules. .

“Our aim is to streamline the collateral workflow for clients, making it easier for them to meet their regulatory requirements,” said Jonathan Spirgel, BNY Mellon’s global head of liquidity and segregation services. “Adding the AcadiaSoft functionality means they’ll only need to share their derivatives portfolio with us once daily: thereafter, we’ll calculate their IM and instruct the movement of the collateral required accordingly.”

Current rules require counterparties to perform daily calculations of IM on non-cleared derivatives transactions, and such calculations can quickly become numerous and complex.

BNY Mellon is the first collateral outsource solution provider that will support the IM calculation and reconciliation needs for non-cleared margin rules. Prior to this expansion, BNY Mellon was already using AcadiaSoft for margin messaging.

Under the new system, AcadiaSoft provides BNY Mellon clients a single point for both messaging and calculation workflows. These new features come in addition to BNY Mellon’s established bilateral margin capabilities. This means the system will handle all phases of transactions from post-trade and settlement through to collateral segregation and monitoring.

“We’re thrilled to be able to offer buy-side derivatives market participants access to AcadiaSoft’s IM calculation and reconciliation services for the very first time through BNY Mellon,” said AcadiaSoft CEO Chris Walsh.