New service deepens commitment to enhanced capital optimization for regulatory changes
Acadia, the leading industry provider of integrated risk management services for the derivatives community, and Capitolis, the leading SaaS platform that drives financial resource optimization for capital markets, today announced the launch of SA-CCR Optimization. SA-CCR Optimization will bring considerable cost savings to firms subject to the Standard Approach to Counterparty Credit Risk (SA-CCR) regulations, focusing on specific FX products such as FX forwards, options, deliverable swaps and cross-currency swaps.
With SA-CCR Optimization, banks and participating financial institutions provide trade data, which Acadia and Capitolis process and generate a series of FX transactions that reduce capital requirements, leaving each client’s net FX risk profile largely unchanged.
“The newest wave of capital regulation is pushing firms to be more mindful of capital consumption across their business. SA-CCR Optimization is an opportunity for them to reduce consumption levels and deploy their capital in a more efficient manner,” says Chris Walsh, Chief Executive Officer of Acadia. “We are thrilled to provide clients with a dynamic infrastructure solution to compress trades and significantly reduce capital consumption, building upon our data analytics with Capitolis’ market-leading optimization platform.”
The launch of SA-CCR Optimization deepens the partnership between the two leaders in their fields, combining Acadia’s risk analytics and margin data platforms and Capitolis’ proprietary technology, allowing for greater capital optimization for financial institutions.
Gil Mandelzis, Chief Executive Officer and Founder of Capitolis added “Our continued integration with Acadia’s trusted platform is an effective solution for our clients to maximize efficiency in SA-CCR balance sheet optimization. Our partnership will also position the industry for success in multilateral optimization of SA-CCR.”
SA-CCR requirements for financial institutions based in some parts of Europe went into effect in June 2021, while regulations in the United States are set to be implemented on January 1, 2022.