AcadiaSoft, an industry provider of risk and collateral management services for the derivatives community, has acquired capital markets consulting and software company Quaternion.
According to AcadiaSoft, the acquisition adds “significant depth” to its risk product offerings and a new Quaternion division — branded the expert services division — has been created, which will focus on providing derivatives market participants with a wide range of analytics and expert services.
The division, AcadiaSoft says, will bring an experienced quantitative analyst team, allowing clients to leverage domain expertise combined with a scalable product set.
As the industry strives for more centralised and standardised risk services, clients will be able to leverage the Quaternion ORE open source framework to enable greater adoption of market standard risk calculators supporting initiatives like SIMM, SA-CCR, XVA calculation and other analytic services, AcadiaSoft states.
The Quaternion division will be led by its co-founders, CEO Donal Gallagher and chief technology officer, Roland Lichters.
The Quaternion offices will remain in place and its Ireland and Germany presence leveraged to serve the broader AcadiaSoft community within these regions.
AcadiaSoft CEO Chris Walsh says: “We are thrilled to have Donal, Roland and the talented team at Quaternion on board as we continue to build out our risk management suite.
“Quaternion has been a trusted partner in our risk mitigation and management offerings. Bringing these capabilities in-house will allow us to develop best-in-class products to optimise and centralise risk management.
“This exciting new chapter with Quaternion is a critical piece of the puzzle as we work towards creating an integrated, real-time risk management solution.”
Gallagher adds: “AcadiaSoft and Quaternion share a strong commitment to developing integrated risk management solutions that will help the industry navigate the many regulatory and cost challenges it faces.”
Previously, AcadiaSoft partnered with Quaternion on multiple products within the risk suite, following the acquisition, these services will now be an integral part of the AcadiaPlus platform.
Elsewhere, AcadiaSoft has partnered with Korean bond pricing company KIS Pricing as part of a further push into Asia Pacific (APAC).
The partnership will give KIS Pricing clients access to AcadiaSoft’s Initial Margin Exposure Manager. The collaboration will also enhance AcadiaSoft’s presence in the South Korean market by expanding its local language resources.
AcadiaSoft first made its Initial Margin Exposure Manager available in APAC in October last year in preparation for phase five and six of the Uncleared Margin Rules (UMR).
