SwapAgent to connect to AcadiaSoft Hub

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  • SwapAgent will supply independent risk calculation to AcadiaSoft Hub
  • Will reduce disputes in the non-cleared margining process
  • Current AcadiaSoft users to benefit from a simplified margining process

LCH, a leading global clearing house, announced today that its SwapAgent service will supply risk calculation data to the AcadiaSoft Hub following the planned launch of SwapAgent in H1 2017. Connecting 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.”

For further information

Rhiannon Davies, Tel: +44 (0)20 7426 7523
Lucie Holloway, Tel: +44 (0)20 7797 1126

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About LCH

LCH is a group of leading multi-asset clearing houses that provides proven risk management capabilities across a range of asset classes. As demand for robust clearing services continues to grow, LCH is committed to maintaining the highest standards of risk management across all our services.

As the markets’ partner, LCH operates an open access model, offering a choice of execution venues, delivering unprecedented choice and efficiencies to the marketplace.

LCH operates clearing houses around the world, with clearing houses incorporated in the UK, France and the United States with additional offices in the Asia Pacific region. It offers clearing services across asset classes including OTC and listed rates; CDS and FX; fixed income; commodities; cash equities and equity derivatives.

LCH is majority owned by London Stock Exchange Group (LSE.L), an international markets infrastructure business that sits at the heart of the world's financial community.

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