Northern Trust Collateral Optimization Capability Helps Investors Meet UMR Obligations

Integration with Acadia Drives Efficiency for OTC Derivatives

Northern Trust (Nasdaq: NTRS) 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.

“Our integrated global architecture and investments in core technology allowed us to build a unified solution for all collateral clients and is a great example of our technology vision at work,” said Pete Cherecwich, President of Corporate & Institutional Services at Northern Trust. “By investing the time and technology up front, we can deliver solutions that offer agility, automation, and long-term value.”

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.

“A key differentiating feature of this initiative is that our investment in technology architecture allowed us to identify, integrate, test and launch the solution in full ahead of the regulatory deadline,” said Nadia Ivanova, Head of C&IS Business Services and North America Asset Servicing Chief Operating Officer at Northern Trust. “By pairing this solution with our other derivatives enhancements, we’ve been able to automate previously manual processes for faster processing and greater accuracy.”

These advanced capabilities are part of Northern Trust’s comprehensive range of collateral, derivatives and liquidity management solutions. Clients can access these services globally, either on a component basis – to complement their current in-house practices – or as part of a broader suite of collateral management solutions.

About Northern Trust

Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of wealth management, asset servicing, asset management and banking to corporations, institutions, affluent families and individuals. Founded in Chicago in 1889, Northern Trust has a global presence with offices in 22 U.S. states and Washington, D.C., and across 23 locations in Canada, Europe, the Middle East and the Asia-Pacific region. As of June 30, 2021, Northern Trust had assets under custody/administration of US$15.7 trillion, and assets under management of US$1.5 trillion. For more than 130 years, Northern Trust has earned distinction as an industry leader for exceptional service, financial expertise, integrity and innovation. Please visit our website or follow us on Twitter.

Northern Trust Corporation, Head Office: 50 South La Salle Street, Chicago, Illinois 60603 U.S.A., incorporated with limited liability in the U.S. Please read our global and regulatory information.


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