Acadia partners with Capitolis to launch data solution for capital optimisation
08 December 2021 US
Image: denisismagilov
Acadia, provider of integrated risk management services for derivatives companies, and Capitolis, the SaaS platform provider, have partnered to launch SA-CCR Optimization.
The SA-CCR Optimization platform combines Acadia鈥檚 risk analytics and margin data platforms and Capitolis鈥� technology to provide greater capital optimisation for financial institutions in line with the Standard Approach to Counterparty Credit Risk (SA-CCR) measurement regulation.
The SA-CCR is a measurement of counterparty credit risk that calculates the exposure at default of derivatives and long-settlement transactions.
With SA-CCR Optimization, banks and participating financial institutions provide trade data, which Acadia and Capitolis then process to generate a series of FX transactions that reduce capital requirements, leaving each client鈥檚 net FX risk profile largely unchanged.
Subject to the SA-CCR regulations, SA-CCR Optimization will focus on specific FX products such as FX forwards, options, deliverable swaps and cross-currency swaps.
SA-CCR regulations for financial institutions went into effect across some parts of Europe in June 2021, while regulations in the US are set to be implemented on 1 January 2022.
Chris Walsh, CEO of Acadia, says: 鈥淭he newest wave of capital regulation is pushing firms to be more mindful of capital consumption across their businesses. We are thrilled to provide clients with a dynamic infrastructure solution to compress trades and significantly reduce capital consumption, building upon our data analytics with Capitolis鈥� market-leading optimisation platform.鈥�
Gil Mandelzis, CEO and founder of Capitolis, adds: 鈥淥ur continued integration withAcadia鈥檚 trusted platform is an effective solution for our clients to maximise efficiency in SA-CCR balance sheet optimisation. Our partnership will also position the industry for success in multilateral optimization of SA-CCR.鈥�
The SA-CCR Optimization platform combines Acadia鈥檚 risk analytics and margin data platforms and Capitolis鈥� technology to provide greater capital optimisation for financial institutions in line with the Standard Approach to Counterparty Credit Risk (SA-CCR) measurement regulation.
The SA-CCR is a measurement of counterparty credit risk that calculates the exposure at default of derivatives and long-settlement transactions.
With SA-CCR Optimization, banks and participating financial institutions provide trade data, which Acadia and Capitolis then process to generate a series of FX transactions that reduce capital requirements, leaving each client鈥檚 net FX risk profile largely unchanged.
Subject to the SA-CCR regulations, SA-CCR Optimization will focus on specific FX products such as FX forwards, options, deliverable swaps and cross-currency swaps.
SA-CCR regulations for financial institutions went into effect across some parts of Europe in June 2021, while regulations in the US are set to be implemented on 1 January 2022.
Chris Walsh, CEO of Acadia, says: 鈥淭he newest wave of capital regulation is pushing firms to be more mindful of capital consumption across their businesses. We are thrilled to provide clients with a dynamic infrastructure solution to compress trades and significantly reduce capital consumption, building upon our data analytics with Capitolis鈥� market-leading optimisation platform.鈥�
Gil Mandelzis, CEO and founder of Capitolis, adds: 鈥淥ur continued integration withAcadia鈥檚 trusted platform is an effective solution for our clients to maximise efficiency in SA-CCR balance sheet optimisation. Our partnership will also position the industry for success in multilateral optimization of SA-CCR.鈥�
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