January 25, 2017

LCH Swap Agent To Send Trade Sensitivities to AcadiaSoft

LCH plan to provide trade sensitivities to AcadiaSoft to support reconciliation of disputes.

SwapAgent Feed AcadiaSoft Sensitivities

An interesting press release from LCH and AcadiaSoft here: If you don't know what SwapAgent is, then read this previous article here. This announcement only serves to embed the SwapAgent platform into the OTC market infrastructure by supporting the margin call process at AcadiaSoft.

LCH, a leading global clearing house, announced today that its LCH SwapAgent service will supply risk calculation data to the AcadiaSoft Hub following the planned launch of LCH SwapAgent in H1 2017. Connecting LCH SwapAgent to the AcadiaSoft Hub (“The Hub”) will further streamline the margining process for the banks already using The Hub to comply with the non-cleared margin rules, which came into effect in the US and Japan on 1 September 2016.

Currently, AcadiaSoft’s users calculate their own trade level risk factors for submission to The Hub for reconciliation between the two counterparties and completion of the initial margin calculation. Using independently calculated risk factors from SwapAgent will eliminate trade level disputes and make the margining process more efficient. Firms can choose to use LCH calculations to either drive their primary calculation or as a tool for comparison and dispute resolution.

Nathan Ondyak, Global Head of SwapAgent, LCH, said: “Our goal is to bring efficiency to the non-cleared market and this partnership is an important milestone. Coupling LCH’s global reach and proven track record in valuation and risk management with Acadiasoft’s expertise and position in non-cleared market infrastructure is a major step to achieving that goal.”  

Chris Walsh, Chief Executive Officer, AcadiaSoft, said: “We’re pleased to be able to offer SwapAgent’s risk calculations to our clients. This new on-Hub service will simplify the margining process for firms using AcadiaSoft to comply with the non-cleared margin rules, without having to significantly overhaul their existing processes. The addition of LCH calculations expands the Hub’s content and its function as a one-stop shop for collateral and risk services.”


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