We wonder if AcadiaSoft’s success due to its better business model or product or is it as much a function of the growing need for collateral management technology products. In November 2011 we wrote about Lombard Risk’s prominence in financial technology surveys. At the time we noted that Lombard Risk was benefitted from a general upswing in demand for regulatory and collateral management reporting services.
To partly answer this question, we think that AcadiaSoft is doing a very solid job in its business partnership activities. Providing access through MarkIt for OTC derivative traders is about as good as it is going to get in terms of market access. Providing an API is also helpful for the do-it-yourself crowd.
Our earlier conversations with the firm suggest to us that they are thinking ahead to look at industry trends and how they fit in. We think that we’ll hear more from AcadiaSoft as the industry adopts more collateral management solutions in general.