AcadiaSoft, a provider of margin automation solutions for counterparties engaged in collateral exchange, has acquired ProtoColl, an end-to-end collateral and margin management service previously owned by the Depository Trust and Clearing Corp. (DTCC).
The Norwell, Mass.-based vendor's acquisition of ProtoColl is aimed at helping it provide users with automated variation margin (VM) processing services. In March, buy-side firms and small banks will be subject to VM rules for non-cleared over-the-counter (OTC) derivatives similar to those already in effect for big banks.
The AcadiaSoft Hub, which was named the best sell-side newcomer at this year's Sell-Side Technology Awards, is already used by 24 of the world's largest banks to comply with the initial margin (IM) rules that have been in place since September 1. This deal creates a central margining solution for IM and VM flows.
"The combination of AcadiaSoft and Protocoll creates an end-to-end risk management solution that is a major step toward the industry's goal of automating the entire margining process on a single platform," said Chris Walsh, CEO of AcadiaSoft, in a statement.
Mark Demo, product director for AcadiaSoft, said in a statement the new platform will benefit all of those in the derivatives industry.
"Small to mid-sized firms now have the basic margin functionality required to automate; large banks get the long-term platform required to substantially reduce costs; and firms of all types and sizes can reduce disputes to manageable levels using standardized data, calculation methods, and workflows," Demo said.
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