Northern Trust’s Collateral Optimization Capability Helps Investors Meet UMR Obligations
CHICAGO–(COMMERCIAL THREAD) – Northern Trust (Nasdaq: NTRS) has launched an automated solution for calculating initial margin to help client asset managers and asset owners comply with global regulations governing trading in derivatives of over-the-counter (OTC).
The solution, made available to clients before a key deadline for the implementation of the rules on unmatched margins (UMR), was developed as part of the integration of Northern Trust with Acadia margin management solutions and fully complements Northern Trust’s full suite of collateral and OTC processing capabilities.
“Our integrated global architecture and core technology investments have enabled us to create a unified solution for all collateral customers and are a great example of our technology vision at work,” said Pete Cherecwich, President of Business Services and to institutions at Northern Trust. “By investing time and technology up front, we can deliver solutions that deliver agility, automation and long-term value. ”
Through its partnership with margin and risk management expert Acadia, Northern Trust provides automated, market-approved support for independent initial margin calculation to help OTC derivatives investors meet complex requirements. of the UMR. Leveraging algorithmic technology to identify the best assets available to meet regulatory eligibility requirements, the solution identifies the optimal assets to deploy to meet margin obligations, helping our clients to maximize investment performance.
“A key feature of this initiative is that our investment in the technology architecture allowed us to identify, integrate, test and launch the solution before the regulatory deadline,” said Nadia Ivanova, Head of Commercial Services C&IS and asset maintenance in North America. Chief Operating Officer at Northern Trust. “By combining this solution with our other derivative enhancements, we were able to automate previously manual processes for faster processing and greater accuracy. ”
These advanced capabilities are part of Northern Trust’s comprehensive portfolio of collateral, derivatives and liquidity management solutions. Customers can access these services worldwide, either on a component basis – to complement their current internal practices – or as part of a larger suite of warranty management solutions.
About Northern Trust
Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of wealth management, asset services, asset management and banking services to businesses, institutions, affluent families and individuals. Founded in Chicago in 1889, Northern Trust has a global presence with offices in 22 US states and Washington, DC, and 23 locations in Canada, Europe, the Middle East and the Asia-Pacific region. As of June 30, 2021, Northern Trust had assets under custody / administration of US $ 15.7 trillion and assets under management of US $ 1.5 trillion. For over 130 years, Northern Trust has distinguished itself as an industry leader for its exceptional service, financial expertise, integrity and innovation. Please visit our website or follow us on Twitter.
Northern Trust Corporation, head office: 50 South La Salle Street, Chicago, Illinois 60603 USA, limited liability company in USA. Please read our global and regulatory information.