Acadia has released a centralised settlement solution, Settlement Manager, to support settlement communication for cash and securities transactions and for triparty or third-party segregation.
The derivatives risk management specialist indicates that this will be first in a series of combined initiatives that will accompany London Stock Exchange Group’s takeover of Acadia, announced in December, which closed in April.
The solution was released with a limited client set on 20 July and has been rolled out today to its full list of settlement clients.
In developing Settlement Manager, the tool makes use of the LSEG SWIFT gateway to support message communication to settlement stakeholders.
This solution will enable settlement participants to utilise standing settlement instructions (SSIs) and to access real-time updates on settlement status, thereby supporting automated settlement workflow while stripping out complexity for their settlement activities.
Among other benefits, this is designed to reduce fragmentation across settlement activities by automating messaging with custodians, triparty agents and bilateral counterparties.
Acadia’s co-head of business development Will Thomey says: “Through industry collaboration, we have developed Settlement Manager to enable a more streamlined workflow.
“By leveraging Acadia’s widely used Margin Manager service, firms can settle their pre-agreed transactions within the same shared infrastructure. This shortens the distance between agreeing to transfer collateral and actually making it happen.”
Krzysztof Wierzchowski, vice president at Franklin Templeton, comments, “We have been working with Acadia to help shape a fresh approach to margin settlement.
“We are constantly working to improve efficiency, reduce collateral transfer times, and improve settlement transparency. Accomplishing it all within Acadia’s existing workflows is a strategic win.”
