TriOptima has extended its collaboration with AcadiaSoft to automate monthly collateral interest payments for over-the-counter (OTC) market participants.
According to International Swap Dealers Association (ISDA) data, cash collateral accounts for approximately 70% of all collateral exchanged for non-cleared derivatives, equivalent to $1.3 trillion in 2019 alone, TriOptima notes. A significant proportion of this market still relies on email and manual reconciliation to manage the interest process, it adds.
“Our clients are aiming to automate large parts of their collateral management lifecycle as they prepare for upcoming phases of the uncleared margin rules (UMR),” says Neil Murphy, business manager at TriOptima. “Enabling clients to process interest in an efficient way, that allows reconciliation of underlying balances and automated matching, is part of that process. triResolve Margin connects more than 200 counterparties to the AcadiaSoft network; hence this collaboration automatically provides the wider market with improved post-trade processing capabilities.”
“We’re excited to extend our work with TriOptima to offer payment matching functionality to our mutual clients,” adds Mark Demo, head of community development at AcadiaSoft. “It’s another step toward complete collateral process automation and will help more firms reduce the amount of time required to complete their monthly cash collateral interest process. It also builds on our goal of increased network connectivity across the industry.”