AcadiaSoft, a provider of margin automation solutions for counterparties engaged in collateral management worldwide, has launched a new AcadiaSoft Hub service, Agreement Manager.
According to AcadiaSoft, the service will create an industry-wide, authoritative data store of legal and operational collateral agreement information for over-the-counter (OTC) derivatives.
Agreement Manager, will match, store and exchange new and existing International Swaps and Derivatives Association variation margin and initial margin details as well as the account control agreements between trading parties and custodians.
The hub will also standardise the legal agreement data shared between parties. The aim is to reduce integration points and ensure interoperability of trading partners, custodians, document management providers and online negotiating vendors.
Creating a golden source copy of the agreement data and facilitating the transfer of the data via a standard model has the potential to create a frictionless onboarding process.
It could also improve the quality of information available for collateral optimisation, risk and collateral management, as well as trade valuation and novation services.
A pilot of Agreement Manager will begin later this month. Participants will include buy-side firms, custodians and a number of global derivatives banks including J.P. Morgan and Goldman Sachs.
In time, Agreement Manager will also support repos, master securities forward transaction agreements, securities lending, clearing and other agreement types.
Richard Barton, product manager for AcadiaSoft Agreement Manager, commented: “By storing data in the Hub and sharing it in a standardised manner, AcadiaSoft will support client optionality, vendor choice and market-wide adoption of automated solutions.”
Natalie Clareburt, executive director in the Strategic Market Infrastructure Group at J.P. Morgan, said: “Standards and interoperability are critical for the industry to adopt and maximise benefit from all service providers. It is great to see so much industry focus and innovation in contract digitisation and negotiation.”
