SmartStream Technologies and Acadia Partner to Automate Collateral Substitutions Movements
May 10, 2023

SmartStream Technologies, the financial Transaction Lifecycle Management (TLM®) solutions provider, has extended its partnership with Acadia, a provider of margin automation services – enabling increased efficiencies for the processing and calculation of substitutions movements for TLM Collateral Management customers, and their associated counterparties.

SmartStream’s TLM Collateral Management solution will work alongside Acadia’s Substitutions Workflow, available via its Margin Manager product. The module will integrate with the workflow to automate the two-way communication and substitution coordination between counterparties.

This enables users to manage substitution details throughout the workflow lifecycle in a standardised messaging format. This is invaluable for clients who are optimising their collateral and who are often faced with a trade-off between optimising their collateral in-order-to reduce funding costs, and manual operational work to manage substitutions. The new module will provide exceptions-based processing and will promote STP for collateral substitutions.

Will Thomey, co-head business development, Acadia, said: “It is a great pleasure to continue our relationship with SmartStream. Over the past two years we have made progress by transforming the way our clients manage their collateral. Helping customers optimise their collateral and better manage substitutions allows them to gain transparency and control over their risk exposure and costs. This is another example of serving our clients by continuing to invest in the collateral or margin workflow, whilst also meeting their business efficiency goals”.

Jason Ang, program manager, TLM Collateral Management, SmartStream, states: “We value our excellent relationship with Acadia, together we have benefitted our clients in the collateral management area. Given the current emphasis for optimisation in the market, we see that there will be an increase in substitutions requests. These requests traditionally have been a time-consuming process, but we have worked with Acadia to provide an automated solution to help our clients save time, reduce manual work, and automate the process. TLM Collateral Management coupled with Acadia’s Margin Manager provides integration with a powerful collateral management solution, and a user-friendly dashboard allowing for quick exception management, with a complete audit trail with final statements. We strive to continually improve service for our clients, and this is a great addition to our existing solution.

 “In addition, this collaboration with Acadia and several Tier 1 financial institutions further validates the need for our industry partners to shorten the settlement cycle, to help with industry efforts such as T+1 and CSDR initiatives – this is becoming of increased importance as deadlines come closer."

For more information, visit: