Newly created service will help firms track impact of IM Exposure
Acadia, the leading industry provider of integrated risk management services for the derivatives community, today has announced the launch of its new Pre-Trade Analytics (PTA) tool.
The PTA tool was created to address an industry wide need for a complimentary service for firms that are in scope for Uncleared Margin Rules (UMR) to estimate the impact on initial margin (IM) exposure for any new trades that a firm is contemplating. The PTA tool meets the need for a centralized solution to review the impact of new trades on a firm’s existing IM exposure, thereby enabling trading decisions that incur the smallest amount of incremental IM exposure to their portfolio.
Mark Demo, Head of Business Development of Acadia said: “We are excited to bring the Pre-Trade Analytics service to market. The ease of use and integration with Acadia’s solutions, make the PTA tool attractive to both new and existing clients. The development of PTA is the next step in our commitment to helping firms measure and manage their risk in a holistic manner.”
The PTA service directly integrates into Acadia’s IM Threshold Monitor and IM Exposure Manager services and provides a real-time view of the impact of selected trades on firms’ IM exposure, helping reduce IM costs by evaluating decisions in advance to stay under UMR regulatory IM Threshold. Firms that don’t currently use Acadia to calculate IM exposure can still benefit from the PTA tool as a standalone service that offers easy onboarding.
The newly launched PTA service allows firms to send their CRIF or trade data for the trades they are considering and immediately they will receive analytics on marginal and total portfolio Reg IM exposure at the Portfolio, Counterparty or Group level.
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