IHS Markit announced an alliance with AcadiaSoft to connect the firms’ industry leading platforms for managing initial margin. The alliance will help the non-cleared derivatives community comply with margin regulation, as potentially over 1,000 firms are brought into scope in phase four (September 2019) and phase five (September 2020). In connecting their platforms, the integration will help shared customers achieve straight-through processing for the entire margin lifecycle, which includes negotiating margin terms, calculating initial margin for each trade and valuing and exchanging collateral daily. Two-way data exchange between IHS Markit and AcadiaSoft will unite the expertise of both firms and automate how technology platforms supporting the margin process source data from one another. Key contractual terms from margin and custodial agreements generated by IHS Markit will be transmitted to AcadiaSoft’s Agreement Manager, and risk sensitivities calculated by IHS Markit will power the Initial Margin Exposure Manager, part of the AcadiaSoft Hub. In turn, margin reconciliation data from AcadiaSoft will be channeled to users of the initial margin calculation and collateral management services from IHS Markit.