Calypso extends partnership with AcadiaSoft to assist firms through UMR phases

By Pavithra R

Calypso Technology, a provider of cloud-enabled, cross-asset, front-to-back solutions and managed services for financial markets, has announced forming of a strategic agreement with AcadiaSoft, the leading industry provider of risk and collateral management services for the non-cleared derivatives community, to provide an interface to its initial margin calculation and reconciliation platform, Initial Margin Exposure Manager (IMEM), within the Calypso Uncleared Margin Rules (UMR) solution.

The resultant fully integrated end-to-end UMR ecosystem is expected to enable Phase 5 and 6 firms to minimise operational risk and lower Total Cost of Ownership (TCO).

“Calypso is aware of the pressure facing financial institutions from the constantly changing regulatory requirements – a pressure that has been further exacerbated for firms coming in-scope in phases 5 and 6 of UMR by the current Covid19 pandemic. We are fully committed to helping these firms to meet compliance requirements. With this agreement, we are adding an interface to the AcadiaSoft IMEM market-standard reconciliation platform that will enable firms to standardise the margin calculation and verification process and resolve disputes, while maximising straight-through processing. We are pleased to further strengthen our existing relationship with AcadiaSoft to the benefit of our mutual clients,” said Mayank Shah, Chief of Strategy and Alliances, Calypso Technology.

Calypso offers clients margin solutions for cleared and uncleared trades by providing a simple path to compliance with the additional optimisation tools required to convert a compliance exercise into a business opportunity. The firm has been providing margin solutions to clients since 2010. It brings significant UMR experience gained from supporting firms falling into scope in Phases 1-4.

By integrating the interface to AcadiaSoft’s IMEM, Calypso clients can benefit from a simple, end-to-end solution, that does not rely on a ‘building blocks’ approach. IMEM is the industry standard for calculation and reconciliation of regulatory initial margin and is used by all in-scope firms in Phases 1-4.

“Industry collaboration is paramount as we move towards the final UMR phases. Our continued partnership with Calypso will give Phase 5 and 6 firms that are Calypso clients direct access to Initial Margin Exposure Manager, providing an end-to-end solution for UMR compliance that minimises cost and reduces operational risk,” said Fred Dassori, Chief Product Officer, AcadiaSoft.

Established since 1997, Calypso Technology leverages innovative technologies like native cloud technology, AI, Big data to re-imagine capital markets. It serves in various verticals, including capital markets, clearing, investment management, central banking, treasury, liquidity, and collateral and has over 35,000 users in 60+ countries.