Market Overview

AcadiaSoft and Quaternion Form Risk Services Partnership


Focus will be on developing products to simplify compliance with
global initial margin regulations

AcadiaSoft Inc., the leading industry provider of margin automation
solutions worldwide, and Quaternion Risk Management Ltd., a leading risk
analytics firm, today announced the formation of a partnership to
provide risk services for firms subject to initial margining
requirements for non-centrally-cleared derivatives. The initiative
couples AcadiaSoft's proven capabilities in automation with Quaternion's
extensive quantitative expertise and will enable AcadiaSoft clients to
access a range of services via the secure environment of the AcadiaSoft

"Combining AcadiaSoft's existing infrastructure with our risk analytics
tools presents opportunities to create new products that will greatly
benefit both the smaller players in the non-centrally-cleared market
facing near-term hurdles, as well as larger, established institutions
looking to reduce spend on functions that have become
‘business-as-usual' and could now be more efficiently outsourced and
standardized," said Donal Gallagher, chief executive officer at

Initially, the partnership will focus on helping firms with
non-centrally cleared derivatives portfolios meet the operational and
regulatory challenges associated with margin requirements. On September
1, 2016, the largest banks that trade non-centrally cleared derivatives
were required to post and collect initial margin (IM) due to a new
margin framework established by the Basel Committee on Banking
Supervision (BCBS) and the International Organization of Securities
Commissions (IOSCO), and each year since, and through 2020, those
requirements touch a growing set of sell-side and buy-side firms.

"We expect to be able to significantly cut the burden placed on market
participants by the non-cleared margin rules and make achieving
compliance a straightforward process – even for relatively small firms,"
said Fred Dassori, head of Risk Services and corporate development at
AcadiaSoft. "After collaborating with the team at Quaternion on a range
of projects over the past year, we're excited to now be formalizing our
partnership, and we're looking forward to working together to greatly
expand the set of tools we offer and give our clients a simple and
efficient path forward."

By offering these future services through the same platform as
AcadiaSoft's existing Initial Margin Exposure Manager and MarginManager
products, which sit at the heart of the current IM calculation,
reconciliation, and collateral messaging processes, AcadiaSoft and
Quaternion aim to make their new risk services as seamlessly-integrated
into existing industry workflows as possible.

About AcadiaSoft, Inc.

AcadiaSoft, Inc. is a financial industry collaborative that is uniquely
focused on delivering margin automation and standards for counterparties
engaged in collateral management. AcadiaSoft's Advisory Groups, Best
Practice Forums and Working Groups provide a unique framework for
integrating the thought leadership and capabilities of over 650 market
participants, market infrastructures and key service providers across
the industry.

Owned and backed by the investment of 17 major industry participants and
infrastructure providers, the AcadiaSoft community has grown to more
than 650 client firms exchanging approximately $400B of collateral on
daily basis. The Company's growth has been driven by regulatory change
in the derivatives industry that is increasing the demand for automated,
transparent and verifiable collateral management.

AcadiaSoft is headquartered outside of Boston in Norwell, MA, and has
offices in London, Tokyo and New York.

For more information, see

About Quaternion Risk Management

Quaternion Risk Management Limited is a capital markets consulting
practice advising on and implementing complex projects with a focus on
the quantitative aspects of risk management, trading and finance.
Quaternion has worked with some of the world's leading financial
institution, is headquartered in Dublin with offices in London,
Dusseldorf and New York. Quaternion has partnered with Columbia
University on systemic risk projects and launched their Fintech Lab in
late 2016. is Quaternion's open source contribution
to the risk community.

For more information on Quaternion, see

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