Lombard Risk Management plc ("Lombard Risk") and AcadiaSoft Inc ("AcadiaSoft") are pleased to announce a successful collaboration for electronic collateral messaging.
Lombard Risk COLLINE® has been enabled for collateral messaging, with full two-way integration achieved with AcadiaSoft's MarginSphere™ community, using the Lombard Risk REFORM™ messaging engine. The combined solution of COLLINE and MarginSphere working fully together is due to go into production shortly at two leading Tier 1 European banks.
Lombard Risk COLLINE is the leading non-legacy product in the collateral management space, with over 50 clients using the product for managing their collateral, ranging from several Tier 1 banks to asset managers, fund administrators and energy companies. COLLINE covers margin management and related workflow for OTC, cleared and listed derivatives and additionally covers repos and securities lending and collateral optimisation across multiple asset classes.
Electronic messaging systems automate the interaction between financial institutions on their margining requirements and offers significant benefits:
- Simplified and scalable operations
- Straight through processing and automated responses
- Increased security
- Seamless interaction
- Reduced operational risk e.g. by avoiding double-key entry
- Comprehensive audit trail
MarginSphere is the result of collaboration between AcadiaSoft and several of the industry's largest financial institutions. It is a margin confirmation community where counterparties engaged in collateral management electronically confirm margin calls, substitutions and interest statements.
John Wisbey, Chief Executive Officer of Lombard Risk, commented: "Electronic messaging and the progressive elimination, or reduction in the reliance on, emails for communicating margin calls and other events - like interest calculations and collateral substitution - is a key step towards safer and more efficient markets.
AcadiaSoft has emerged as the leading provider in the messaging space for this area and it made sense to be able to offer our collateral management clients robust and scalable two- way integration between COLLINE and MarginSphere. Messaging is represented in the COLLINE collateral management dashboard and exposure/interest management screens.
Lombard Risk's solution has been designed in a way that integration with other collateral messaging systems (including internal messaging systems at a bank) is possible using the same technology, but this is the first we have successfully brought to the point of production. We are delighted that we and AcadiaSoft have been able to make these two technologies work so well together and look forward to integrating with even more functionality going forward."
Craig Welch, Chief Executive Officer of AcadiaSoft, commented: "MarginSphere provides industry standard automation of the margin process - a critical element of Dodd-Frank and Basel III risk management infrastructures. Regulation is a high-focus business area for Lombard Risk as well, which made them such good partners in this project."