AcadiaSoft has launched the latest version of its electronic margining platform for over-the-counter (OTC) derivatives. 

MarginSphere 2 is designed to address new regulations for non-centrally-cleared derivatives that will take effect next year, enabling mandatory exchange of bi-lateral initial margin, automated processing of segregated collateral assets, verified management of collateral disputes, and unbundling of collateral movements into currency specific silos.

"A lot of firms are just now waking up to the fact that margin volumes are about to explode, making traditional manual processing impractical and expensive," said Chris Walsh, chief operating officer of AcadiaSoft. 

"MarginSphere 2 provides the industry with a standardised electronic solution well in advance of the September 2016 regulatory compliance deadline."

The new regulations will take effect on September 1 2016 and, once implemented, margin volumes are expected to surge three to 10 times above current levels according to AcadiaSoft. 

The firm said that the upgrade will allow increased margin activity to be managed without a directly proportional increase in operational costs, as well as improved risk mitigation processes and creation of a clear audit trail for margin transactions.

MarginSphere interacts with in-house and partner collateral systems to automate the margin process while assuring changes are accurately reflected in both upstream and downstream processes.

"In coming months, we will continue to engage with our Working Groups and other major stakeholders to further enhance the solution we have developed with their input," Walsh added.