Acadia has launched a new solution to enhance settlement efficiency and reduce process failures. The London Stock Exchange-owned firm said the new service, dubbed Settlement Manager, would streamline the messaging required for regular market settlements, whether cash or equities.

Additionally, Settlement Manager would enable counterparties to benefit from Shared Standing Settlements Instructions (SSIs) and the shared real-time settlement status. According to the company's statement, that would enable workflow and eliminate operational complexity.

Settlement Efficiency

Commenting on the launch, Will Thomey, the Co-Head of Business Development at Acadia, said: "Through industry collaboration, we have developed Settlement Manager to enable a more streamlined workflow. By leveraging Acadia's Margin Manager Service, firms can settle pre-agreed transactions within the same shared infrastructure. This shortens the distance between agreeing to transfer collateral and actually making it happen."

With Settlement Manager, Acadia hopes that the 3,000+ companies using its Margin Manager to manage margin calls would use Settlement Manager to settle transactions. According to the post-trade firm, Settlement Manager offers a community approach to settlements by sharing the status simultaneously with each party in margin requirements.

Additionally, the other benefits traders would reportedly get from the central service include the elimination of fragmented workflows and a centralized mechanism to store settlement instructions. There is also the advantage of a near real-time confirmation settlement, the company said.

The announcement said that Acadia's Settlement Manager is a joint initiative between the company and the London Stock Exchange (LSEG). It allows the service to benefit from LSEG SWIFT gateway, a solution that automates middle and back office processes for mainstream massaging and efficiency.

LSEG Acquired Acadia

Finance Magnates reported last year that the London Stock Exchange (LSEG), which had a minority stake in Acadia since 2018, had decided to buy out the risk and collateral management company. The acquisition aimed to boost multi-asset post-trade offerings, LSEG explained.

According to the information on the company's website, Acadia has a community of more than 3,000 companies, comprising banks and firms in the derivatives sector. Additionally, the company claims to exchange more than $1 trillion of collateral daily through its margin automation service.

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