AcadiaSoft takes over ProtoColl from DTCC
22 November 2016 Massachusetts
Image: Shutterstock
AcadiaSoft, a provider of margin automation solutions for collateral management, has acquired ProtoColl, an end-to-end collateral and margin management service.
ProtoColl was purchased from from the Depository Trust & Clearing Corporation (DTCC) in anticipation of the increasing market demand for risk management solutions that the second phase of non-cleared over-the-counter derivatives regulation will bring.
The specific terms of the deal were not disclosed.
ProtoColl, which DTCC picked up when it took full ownership of Omgeo, is integrated with DTCC-Euroclear GlobalCollateral Limited’s Margin Transit Utility.
Thousands of smaller buy-side firms and banks will be required to post variation margin as of March 2017 and many are expected to turn to vendor solutions as a cost-effective route to compliance.
The new requirement has been expected of the largest global banks since 1 September. All 24 users of the AcadiaSoft Hub were able to comply.
"The hub is running smoothly, managing significant volumes from the world's largest global banks," said Chris Walsh, CEO of AcadiaSoft.
"The combination of AcadiaSoft and ProtoColl creates an end-to-end risk management solution that is a major step toward the industry's goal of automating the entire margining process on a single platform."
Mark Demo, product director for AcadiaSoft, added: "This expanded market infrastructure benefits all firms within the derivatives industry."
"Small to mid-sized firms now have the basic margin functionality required to automate; large banks get the long-term platform required to substantially reduce costs; and firms of all types and sizes can reduce disputes to manageable levels using standardised data, calculation methods and workflows."
ProtoColl was purchased from from the Depository Trust & Clearing Corporation (DTCC) in anticipation of the increasing market demand for risk management solutions that the second phase of non-cleared over-the-counter derivatives regulation will bring.
The specific terms of the deal were not disclosed.
ProtoColl, which DTCC picked up when it took full ownership of Omgeo, is integrated with DTCC-Euroclear GlobalCollateral Limited’s Margin Transit Utility.
Thousands of smaller buy-side firms and banks will be required to post variation margin as of March 2017 and many are expected to turn to vendor solutions as a cost-effective route to compliance.
The new requirement has been expected of the largest global banks since 1 September. All 24 users of the AcadiaSoft Hub were able to comply.
"The hub is running smoothly, managing significant volumes from the world's largest global banks," said Chris Walsh, CEO of AcadiaSoft.
"The combination of AcadiaSoft and ProtoColl creates an end-to-end risk management solution that is a major step toward the industry's goal of automating the entire margining process on a single platform."
Mark Demo, product director for AcadiaSoft, added: "This expanded market infrastructure benefits all firms within the derivatives industry."
"Small to mid-sized firms now have the basic margin functionality required to automate; large banks get the long-term platform required to substantially reduce costs; and firms of all types and sizes can reduce disputes to manageable levels using standardised data, calculation methods and workflows."
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