Acadia launches Pre-Trade Analytics service
06 June 2022 US
Image: arthead/stock.adobe.com
Acadia, a provider of integrated risk management services for the derivatives community, has announced the launch of its Pre-Trade Analytics (PTA) tool.
The service is expected to address an industry wide need for a complementary service for firms that are in scope for Uncleared Margin Rules (UMR), to estimate the impact of initial margin (IM) exposure for any new trades that a firm was contemplating.
The PTA tool will review the impact of new trades on a firm’s existing IM exposure, thereby enabling trading decisions that incur the smallest amount of incremental IM exposure to their portfolio.
It will integrate into Acadia’s IM Threshold Monitor and IM Exposure Manager services and will provide a real-time view of the impact of selected trades on firms’ IM exposure.
As an objective, the service will reduce IM costs by evaluating decisions in advance to stay under UMR regulatory IM Threshold.
PTA allows firms to send their CRIF or trade data for the trades they are considering and they will receive analytics on marginal and total portfolio Reg IM exposure at the portfolio, counterparty or group level.
Mark Demo, head of business development of Acadia, comments: “We are excited to bring the Pre-Trade Analytics service to market. The ease of use and integration with Acadia’s solutions make the PTA tool attractive to both new and existing clients.
“The development of PTA is the next step in our commitment to helping firms measure and manage their risk in a holistic manner”.
Firms that do not currently use Acadia to calculate IM exposure can still benefit from the PTA tool as a standalone service that offers onboarding.
The service is expected to address an industry wide need for a complementary service for firms that are in scope for Uncleared Margin Rules (UMR), to estimate the impact of initial margin (IM) exposure for any new trades that a firm was contemplating.
The PTA tool will review the impact of new trades on a firm’s existing IM exposure, thereby enabling trading decisions that incur the smallest amount of incremental IM exposure to their portfolio.
It will integrate into Acadia’s IM Threshold Monitor and IM Exposure Manager services and will provide a real-time view of the impact of selected trades on firms’ IM exposure.
As an objective, the service will reduce IM costs by evaluating decisions in advance to stay under UMR regulatory IM Threshold.
PTA allows firms to send their CRIF or trade data for the trades they are considering and they will receive analytics on marginal and total portfolio Reg IM exposure at the portfolio, counterparty or group level.
Mark Demo, head of business development of Acadia, comments: “We are excited to bring the Pre-Trade Analytics service to market. The ease of use and integration with Acadia’s solutions make the PTA tool attractive to both new and existing clients.
“The development of PTA is the next step in our commitment to helping firms measure and manage their risk in a holistic manner”.
Firms that do not currently use Acadia to calculate IM exposure can still benefit from the PTA tool as a standalone service that offers onboarding.
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