Banks Embrace Cloud Technology to Address Regulatory Demands of FRTB Market Risk Rules

New York, NY – May 11, 2017

Numerix, the leader in risk technology today announces the availability of the Numerix FRTB app on Microsoft AppSource. Built on Microsoft cloud technology, Numerix FRTB and its companion app provide a flexible, lightweight solution that makes it easy to perform impact assessments, improve strategic decision making and maximize capital efficiency for FRTB. With the app, users can see key reports generated for FRTB stakeholders such as Chief Risk Officers, heads of trading desks, and staff in the risk department, such as quantitative analysts and production managers.

“The norms of financial services IT have changed. We’re now seeing the adoption of public cloud solutions by the oldest and most traditional banking institutions. With names like J.P. Morgan having publicly endorsed their use of public cloud infrastructure, fixed mindsets are changing,” said Steve O’Hanlon, Chief Executive Officer, Numerix. “Banks are big ships to turn, but the overwhelming need to optimize costs to comply with new financial regulations like FRTB cannot be ignored. It requires new and flexible technology. In these instances, the economics of the cloud make sense – especially as requirements around FRTB are still somewhat fluid. With a proactive cloud strategy, banks can be nimble enough to react and be strategic about optimizing costs versus throwing more servers at the problem.”

“The banking industry is a focus for Microsoft. As part of that focus, we have made a strong commitment to partners who deliver SaaS applications. Numerix FRTB – built on Microsoft cloud technology – is a perfect example of a banking SaaS application that delivers value to our customers,” adds Andre Burrell, Director Industry Solutions for Cloud, Banking and Capital Markets, Microsoft.

As a high-performance, agile, SaaS solution, Numerix FRTB and its app can be leveraged for FRTB impact assessments to inform early stage strategic decisions. Banks can start to immediately reorganize trading desks for optimal capital efficiency based on what was discovered. Once running, banks can perform all required tasks to calculate FRTB capital requirements under the Standardized Approach (SA) or the Internal Models Approach (IMA), and can deliver FRTB reporting on a daily and monthly basis with accuracy and completeness.

key highlights

  • A summary dashboard provides heads of risk with an at-a-glance view of the banks’ total capital charge, as well as high level breakdowns of SA and IMA capital charges with their associated components.

  • A desk view tab highlights which desks are responsible for unexpected increases in capital charges, and users can further drill down into detailed reports to examine where the increases are originating from.

  • Users can see how capital is being allocated to specific desks, which desks are operating under IMA or SA approaches, and how capital charges would increase if certain desks reverted from using IMA to SA.

  • Risk analysts can see which trading desks passed or failed back testing requirements and PnL attribution tests, so they can investigate further.

  • Production managers are also plugged-in and can review the status of calculation jobs from any device, to watch for failed tasks and ensure the calculations run successfully each day.

 

“With the app, key stakeholders can quickly see how capital is being utilized so they can take appropriate trading desk actions to manage risks and improve capital use.  The app even illustrates the “cliff effect” for IMA desks, showing the increased capital charges associated with reverting from IMA to SA status, so they can take proactive action to avoid this fate,” Satyam Kancharla, Chief Product and Strategy Officer of Numerix. “The Numerix FRTB app is just one of the groundbreaking ways that Numerix is guiding banks through the FRTB transition. With Numerix our customers are not only discovering ways to optimize trading operations for capital efficiency, but are empowered to expose and pinpoint possible weaknesses and vulnerabilities in current processes and calculations so they can mitigate them.”

Learn how Numerix is helping banks embrace cloud technology for FRTB compliance. Try the free trial on Microsoft AppSource

About Numerix
Numerix is the leading provider of innovative capital markets technology solutions and real-time intelligence capabilities for trading and risk management. Committed to out-of-the box thinking, the exploration and adoption of latest technologies, Numerix is dedicated to driving a more open, fintech oriented, digital financial services market. Built upon a 20+ year analytical foundation of deep practical knowledge, experience and IT understanding, Numerix is uniquely positioned in the financial services ecosystem to help its users reimagine operations, modernize business processes and capture profitability. For more about Numerix: http://www.numerix.com/

PR Contact:

Emily Jean-Pierre
Vice President of Public Relations
P: +1 646 898 1294
M: +1 646 373 9654
ejeanpierre@numerix.com

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