AcadiaSoft, the leading industry provider of margin automation solutions for counterparties engaged in collateral exchange worldwide, today announced it has acquired ProtoColl, an end-to-end collateral and margin management service, from The Depository Trust & Clearing Corporation (DTCC).
This coming March, thousands of buy-side firms and smaller banks will become subject to new variation margin (VM) rules for non-cleared OTC derivatives that went into effect September 1 for the largest global banks, all 24 of which are using the AcadiaSoft Hub in order to comply. The purchase of ProtoColl accelerates AcadiaSoft’s ability to provide market participants with automated VM processing services, creating a Central Margining solution for both IM and VM flows.
“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.”
“This expanded market infrastructure benefits all firms within the derivatives industry,” added Mark Demo, Product Director for AcadiaSoft. “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 standardized data, calculation methods and workflows.”
The acquisition also enlarges the AcadiaSoft team, which now surpasses 100 people. The company recently opened a new, more spacious New York office and expanded its London facility to accommodate the rapid employee growth.
The AcadiaSoft Hub is a central margining platform which acts like a collateral operating system to automates, standardizes and integrates margin calculations, reconciliations, communication and disputes management for counterparties involved in the margining process.