Bloomberg Introduces Pre-Trade SIMM Calculations to Support Phase 6 Initial Margin UMR Adherence

NEW YORK, Dec. 8, 2021 /PRNewswire/ -- Bloomberg and Acadia, a leading provider of integrated risk management services for the derivatives community, today announced the integration of MARS SIMM with Acadia's IMEM (Initial Margin Exposure Manager) module for Standard Initial Margin Model (SIMM) Pre-Trade analytics. The new calculations enable clients to run pre-trade SIMM analytics through Bloomberg's Multi Asset Risk Solutions (MARS) using Acadia's IMEM CRIF data capabilities.

MARS SIMM is an optimization tool that allows traders to improve their front office decision making in light of the current Uncleared Margin Rule framework. The integration enables clients to run SIMM pre-trade analytics through MARS SIMM using Acadia's Initial Margin Exposure Manager (IMEM) CRIF capabilities. Firms will have the ability to import their respective CRIF files via Acadia to MARS in order to determine their margin exposure and adjust their portfolios' allocations to minimize custodial costs incurred by exposures of over $50 million.

As part of the longstanding initial margin rule framework created by the Basel Committee and the International organization of Securities Commissions (IOSCO), the remaining stages require a broader range of institutions to face the implemented exposure obligations. Baked into those requirements is the expectation that firms who surpass an exposure threshold of $50 million, will calculate an initial margin using ISDA's SIMM, which can result in added costs and residual stipulation for impacted firms.

The addition of the pre-trade SIMM analytics expands Bloomberg's existing post-trade integration with Acadia. Since 2018, the service has enabled market participants in-scope for the calculation of initial margin for uncleared derivatives access to risk sensitivities calculation services both through Bloomberg and Acadia. 

"We are pleased to expand our partnership with Bloomberg," says Fred Dassori, Chief Product Officer, Acadia. "The additional capabilities that we're making available to MARS clients that use IM Exposure Manager, Acadia's  most widely used tool for initial margin reconciliation, address a need for visibility into expected future IM exposure and enables clients to make more informed trading decisions."

"Our expanded integration with Acadia will provide our clients a more comprehensive solution that enables them to better manage derivatives risk, while helping to minimize costs related to their exposures," said Jose Ribas, Global head of Risk & Pricing Solutions at Bloomberg. "We remain focused on providing our clients with enhanced risk management tools and functionality through MARS that optimize their workflows, while helping them comply with regulatory requirements."

MARS SIMM is accessed through Bloomberg's Multi Asset Risk System (MARS), a comprehensive suite of risk management solutions. MARS, which is delivered on the Bloomberg Terminal and via APIs, provides risk analytics for cash and derivatives securities, from vanilla to complex and cash structured products. Bloomberg Risk solutions cover all traders and portfolio managers' front-office needs across market risk, XVA, credit risk, collateral and SIMM among others, which are built on a common pricing library to provide consistency across client workflows.

About Bloomberg
Bloomberg, the global business and financial information and news leader, gives influential decision makers a critical edge by connecting them to a dynamic network of information, people and ideas. The company's strength – delivering data, news, and analytics through innovative technology, quickly and accurately – is at the core of the Bloomberg Terminal. Bloomberg's enterprise solutions build on the company's core strength: leveraging technology to allow customers to access, integrate, distribute, and manage data and information across organizations more efficiently and effectively. For more information, visit www.bloomberg.com or request a demo.

About Acadia 
Acadia is the leading industry provider of integrated risk management and workflow automation services for the derivatives community. Its central industry standard platform enables a network of banks and other derivatives firms to improve efficiency and mitigate costs across the entire trade life cycle. 

Acadia's suite of analytics solutions and services helps firms manage risk better, smarter and faster. Through an open-access model, Acadia brings together the top derivatives banks and asset managers, along with several market infrastructures and innovative vendors. Backed by 16 major industry participants and market infrastructures, Acadia is used by a community of over 1600 firms exchanging more than $1 trillion of collateral on daily basis via its margin automation services. Acadia is headquartered in Norwell, MA, and has offices in Boston, Dublin, Düsseldorf, London, New York, and Tokyo. Acadia® is a registered trademark of AcadiaSoft, Inc. For more information, visit acadia.inc. Follow us on Twitter and LinkedIn. 

SOURCE Bloomberg