Acadia and Transcend form Collateral Validation Service
12 January 2022 US
Image: Mykyta/stock.adobe.com
Acadia and Transcend have partnered to deliver an automated Collateral Validation Service to support firms in complying with Uncleared Margin Rules (UMR) Phase 6 requirements.
This service allows the buy-side and broker-dealers to manage the growing complexity and volume of margin activity driven by UMR.
It is designed to ensure all end of day collateral balances held at third-party and triparty custodians meet the required criteria, including collateral eligibility, sufficiency, concentration, and wrong-way risk according to the requirements defined in their related collateral agreements.
Integrating Transcend’s triparty and custodian connectivity and collateral validation analytics along with Acadia’s margin, collateral and agreement management products, the service provides validation capabilities in accordance with client agreements and communicates results daily.
The service will be hosted on Acadia’s platform independent of a client’s existing collateral management workflow.
Speaking on the announcement, Bimal Kadikar, CEO at Transcend says: “Our Collateral Validation Service empowers firms to respond to the new and existing margin requirements. As we formally extend Transcend’s offerings to the buy-side, we are excited for the many opportunities ahead with Acadia and look forward to expanding our capabilities in new, transformational ways.”
Mark Demo, head of business development at Acadia, adds: “By partnering with Transcend, we continue to ensure that our clients benefit from a more streamlined and automated approach to UMR compliance. Our overarching goal is to deliver value and reduce risk for our clients and we are excited by this partnership since it firmly delivers on this objective.”
This service allows the buy-side and broker-dealers to manage the growing complexity and volume of margin activity driven by UMR.
It is designed to ensure all end of day collateral balances held at third-party and triparty custodians meet the required criteria, including collateral eligibility, sufficiency, concentration, and wrong-way risk according to the requirements defined in their related collateral agreements.
Integrating Transcend’s triparty and custodian connectivity and collateral validation analytics along with Acadia’s margin, collateral and agreement management products, the service provides validation capabilities in accordance with client agreements and communicates results daily.
The service will be hosted on Acadia’s platform independent of a client’s existing collateral management workflow.
Speaking on the announcement, Bimal Kadikar, CEO at Transcend says: “Our Collateral Validation Service empowers firms to respond to the new and existing margin requirements. As we formally extend Transcend’s offerings to the buy-side, we are excited for the many opportunities ahead with Acadia and look forward to expanding our capabilities in new, transformational ways.”
Mark Demo, head of business development at Acadia, adds: “By partnering with Transcend, we continue to ensure that our clients benefit from a more streamlined and automated approach to UMR compliance. Our overarching goal is to deliver value and reduce risk for our clients and we are excited by this partnership since it firmly delivers on this objective.”
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