Northern Trust Collateral Optimization Capability Helps Investors Meet UMR Obligations
Northern Trust has launched an automated solution for initial margin calculation to help asset manager and asset owner clients comply with global regulations governing trading of over-the-counter (OTC) derivatives. The solution, made available to clients in advance of a key deadline for implementation of Uncleared Margin Rules (UMR), was developed as part of Northern Trust’s integration of Acadia’s margin management solutions and fully complements Northern Trust’s full suite of collateral and OTC processing capabilities. Through its partnership with margin and risk management expert Acadia, Northern Trust offers market-approved, automated support for an independent calculation of initial margin to help investors in OTC derivatives meet complex UMR requirements. Leveraging algorithmic technology to identify the best assets available to meet regulatory eligibility requirements, the solution identifies optimal assets to be deployed to meet margin obligations – helping our clients maximize investment performance.