Hazeltree collaborates with AcadiaSoft to help clients with UMR
21 February 2020 New York
Image: Shutterstock
Hazeltree, a provider of integrated treasury management and portfolio finance solutions, has partnered with AcadiaSoft to enhance its collateral management platform ahead of the implementation of the final waves of the Uncleared Margin Rules (UMR).
Asset managers, pension funds and insurance companies are scheduled to start posting initial margin (IM) for non-centrally cleared derivatives under UMR based on their volume thresholds either with phase five on 1 September 2020 or phase six on 1 September 2021.
Under the new rules, derivatives trading relationships become increasingly complex, requiring both sides of each transaction to calculate daily IM, Hazeltree highlighted.
In response to this challenge, the partnership will see the Hazeltree Collateral Manager service now include Standard Initial Margin Model (SIMM) calculations, in partnership with AcadiaSoft.
According to Hazeltree, calculating bilateral margin under SIMM requires sophisticated risk, sensitivities and market data inputs across all covered trading with each respective counterparty.
The new initiative will provide the Hazeltree buy-side community with seamless margin calculations for their entire margin workflow, all in a single cloud solution.
Hazeltree explained that Hazeltree Collateral Manager helps optimise collateral usage and minimise operational risks.
Additionally, it strengthens controls and enhances treasury return on investment through a streamlined, automated over the counter collateral management process, Hazeltree noted.
Fred Dassori, head of strategic development at AcadiaSoft, said: “By partnering with Hazeltree, we’re able to offer the buy-side community a state-of-the-art integrated solution that both helps our clients meet their UMR obligations and takes another step toward standardisation across the industry.”
“The more consistency we can bring to these services, the more efficient we’ll make the entire margin process for our clients,” Dassori added.
Asset managers, pension funds and insurance companies are scheduled to start posting initial margin (IM) for non-centrally cleared derivatives under UMR based on their volume thresholds either with phase five on 1 September 2020 or phase six on 1 September 2021.
Under the new rules, derivatives trading relationships become increasingly complex, requiring both sides of each transaction to calculate daily IM, Hazeltree highlighted.
In response to this challenge, the partnership will see the Hazeltree Collateral Manager service now include Standard Initial Margin Model (SIMM) calculations, in partnership with AcadiaSoft.
According to Hazeltree, calculating bilateral margin under SIMM requires sophisticated risk, sensitivities and market data inputs across all covered trading with each respective counterparty.
The new initiative will provide the Hazeltree buy-side community with seamless margin calculations for their entire margin workflow, all in a single cloud solution.
Hazeltree explained that Hazeltree Collateral Manager helps optimise collateral usage and minimise operational risks.
Additionally, it strengthens controls and enhances treasury return on investment through a streamlined, automated over the counter collateral management process, Hazeltree noted.
Fred Dassori, head of strategic development at AcadiaSoft, said: “By partnering with Hazeltree, we’re able to offer the buy-side community a state-of-the-art integrated solution that both helps our clients meet their UMR obligations and takes another step toward standardisation across the industry.”
“The more consistency we can bring to these services, the more efficient we’ll make the entire margin process for our clients,” Dassori added.
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