Northern Trust has launched an automated solution for initial margin calculation to help asset manager and asset owner clients comply with global regulations governing trading of over-the-counter (OTC) derivatives.
The solution, made available to clients in advance of the implementation of Uncleared Margin Rules (UMR), was developed as part of Northern Trust’s integration of Acadia’s margin management solutions and complements Northern Trust’s suite of collateral and OTC processing solutions.
Leveraging algorithmic technology to identify the best assets available to meet regulatory eligibility requirements, the solution identifies optimal assets to be deployed to meet margin obligations – helping Northern Trust’s clients maximise investment performance.
The new solution adds to Northern Trust’s range of collateral, derivatives and liquidity management solutions.
Pete Cherecwich, president of corporate and institutional services at Northern Trust says: “Our integrated global architecture and investments in core technology allowed us to build a unified solution for all collateral clients and is a great example of our technology vision at work.”
Nadia Ivanova, head of C&IS business services and North America asset servicing COO at Northern Trust, comments: “A key differentiating feature of this initiative is that our investment in technology architecture allowed us to identify, integrate, test and launch the solution in full ahead of the regulatory deadline.
She adds: “By pairing this solution with our other derivatives enhancements, we’ve been able to automate previously manual processes for faster processing and greater accuracy.”
