NEW YORK, December 8, 2021 / PRNewswire / – Bloomberg and Acadia, a leading provider of integrated risk management services to the derivatives community, today announced the integration of MARCH SIMM with Acadia’s Initial Margin Exposure Manager (IMEM) module for pre-trade analysis of the Standard Initial Margin Model (SIMM). The new calculations allow clients to run pre-trade SIMM analyzes through Bloomberg’s Multi-Asset Risk Solutions (MARS) using Acadia’s IMEM CRIF data capabilities.
MARCH SIMM is an optimization tool that allows traders to improve their front office decision making in light of the current framework of the uncompensated margin rule. The integration allows clients to run pre-trade SIMM analyzes through MARCH SIMM using the CRIF capabilities of Acadia’s Initial Margin Exposure Manager (IMEM). Companies will have the ability to import their respective CRIF files via Acadia to MARS in order to determine their exposure to margins and adjust their portfolio allocations to minimize custody costs incurred by exposures greater than $ 50 million.
Under the long-standing framework of initial margin rules created by the Basel Committee and the International Organization of Securities Commissions (IOSCO), the remaining steps require a wider range of institutions to meet debt obligations. exhibition implemented. At the heart of these requirements is the expectation that companies that exceed an exposure threshold of $ 50 million, will calculate an initial margin using ISDA’s SIMM, which may result in additional costs and residual stipulation for the companies involved.
The addition of pre-trade SIMM analysis extends Bloomberg’s existing post-trade integration with Acadia. Since 2018, the service has allowed market participants involved in the calculation of the initial margin for non-cleared derivatives to access risk sensitivities calculation services both through Bloomberg and Acadia.
“We are delighted to expand our partnership with Bloomberg,” says Fred dassori, product manager, Acadie. âThe additional functionality we are making available to MARS customers using IM Exposure Manager, Acadia’s most widely used tool for initial margin reconciliation, addresses a need for visibility into expected future messaging exposure. instantaneous and enable clients to make more informed trading decisions. “
âOur expanded integration with Acadia will provide our clients with a more comprehensive solution that will allow them to better manage derivatives risk, while helping to minimize the costs associated with their exposures,â said Jose ribas, Global Head of Risk and Pricing Solutions at Bloomberg. âWe remain focused on providing our customers with enhanced risk management tools and features through MARS that optimize their workflows, while helping them comply with regulatory requirements. “
MARCH SIMM is accessible through Bloomberg’s Multi Asset Risk System (MARS), a comprehensive suite of risk management solutions. MARS, which is provided on the Bloomberg terminal and via APIs, provides risk analysis for cash and derivative securities, from vanilla to complex structured products and cash. Bloomberg risk The solutions cover all the front-office needs of traders and portfolio managers in market risk, XVA, credit risk, collateral and SIMM, among others, which rely on a common pricing library to ensure consistency between customer workflows.
Bloomberg, the global leader in business and financial information and intelligence, gives influential decision-makers a critical advantage by connecting them to a dynamic network of information, people and ideas. Corporate strength – delivering data, news and analysis through innovative technology, quickly and accurately – is at the heart of the Bloomberg Terminal. Bloomberg’s enterprise solutions are built on the core strength of the business: leveraging technology to enable customers to access, integrate, distribute and manage data and information between organizations. more effective and efficient way. For more information visit www.bloomberg.com Where request a demo.
Acadia is the industry’s leading provider of integrated risk management and workflow automation services to the derivatives community. Its industry-standard central platform enables a network of banks and other derivative companies to improve efficiency and mitigate costs throughout the trading lifecycle.
Acadia’s suite of analytics solutions and services help businesses manage risk better, smarter, and faster. Through an open access model, Acadia brings together the best derivatives banks and asset managers, as well as several market infrastructures and innovative suppliers. Supported by 16 major industry and market infrastructure players, Acadia is used by a community of over 1,600 companies trading over 1000 billion dollars day-to-day collateral via its margin automation services. Acadia is headquartered in Norwell, MA, and has offices at Boston, Dublin, DÃ¼sseldorf, London, new York, and Tokyo. AcadiaÂ® is a registered trademark of AcadiaSoft, Inc. For more information, visit acadia.inc. follow us on Twitter and LinkedIn.
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