In a live interview on Feb. 9, Eugene Grygo, the chief content officer for FTF News and FTF, spoke with Chris Walsh, CEO of AcadiaSoft, Roland Lichters, co-head of Quantitative Services at AcadiaSoft, and Donal Gallagher, managing director of the Quaternion division of AcadiaSoft. The interview was recorded and archived for later viewing.
AcadiaSoft recently acquired Quaternion Risk Management, and Walsh, Gallagher, and Lichters provided insight into the many impacts of the acquisition upon the future of collateral management and the competitive landscape.
After the acquisition, AcadiaSoft created the Quaternion division focused on “providing derivatives market participants with a wide range of analytics and expert services,” according to an official statement from AcadiaSoft officials. The new division will be run by Quaternion’s founders — Gallagher and Lichters.
The new services division will enable AcadiaSoft to offer access to a quantitative analyst team, “allowing clients to leverage domain expertise,” officials say. “The Quaternion offices will remain in place and its Ireland and Germany presence leveraged to serve the broader AcadiaSoft community within these regions.”
Previously, AcadiaSoft partnered with Quaternion to offer risk mitigation and management offerings, Walsh says. The two vendors worked together on the IM Risk Generator, IM Backtesting and Benchmarking, and CSA Valuation Service offerings. “Following the acquisition, these services will be an integral part of the AcadiaPlus platform,” officials say.
“Bringing these capabilities in-house will allow us to develop best-in-class products to optimize and centralize risk management. This exciting new chapter with Quaternion is a critical piece of the puzzle as we work toward creating an integrated, real-time risk management solution,” Walsh says.
Ultimately, the acquisition means that AcadiaSoft clients can use the Quaternion ORE open-source framework for “greater adoption of market standard risk calculators supporting initiatives like SIMM, SA-CCR, XVA calculation and other analytic services,” according to officials.