Why Margin Automation?
Counterparty credit risk has emerged as a paramount issue that has captured the attention of market participants, regulators, agencies and lawmakers – and collateral has become the standard in risk mitigation.

"It (Collateral) has become a risk-reduction method of choice for banks and non-bank financial institutions for many reasons; it caters for the disparity in creditworthiness between parties, it reduces capital requirements which frees up capital for other investment purposes, and it improves transaction pricing by reducing the credit spread that is charged to a counterparty."
- ISDA, Collateral Market Overview, March 2010.

As collateral in circulation has grown from 1 to 2-3 trillion USD since 2007, so have the staffs and other costs required to manage collateral programs. Collateral systems have been implemented within firms - but between firms, margin calls are exchanged, cash and securities are moved and all the required information is still exchanged via hundreds of thousands of emails and phone calls every day. These manual communications cannot be tracked, reconciled or scaled and are prone to breaks – often times involving mind-boggling sums of cash.

Enter AcadiaSoft – to bring order to the chaos
AcadiaSoft connects these market participants on a platform that electronically agrees calls and collateral moves between parties. Exposures are calculated, matched and agreed through seamless electronic communications between collateral management systems. The calculations, agreements and transactions that mitigate risk are demystified – now fully visible, organized and synchronized with counterparties. AcadiaSoft’s collateral confirmation community:

• Reduces costs and counterparty credit risk
• Enables compliance with Dodd-Frank and Basel III driven regulatory changes and;
• Allows the collateral segment of the industry to scale and grow.