FRTB (Fundamental Review of the Trading Book) represents the most significant market risk regulatory change in at least the last decade. This regulation set will manifestly change the way banks run their trading business and will require changes to the technology infrastructure that needs to support it as aging legacy platforms as are just not up to the task. So as the 2019 FRTB implementation deadline approaches, it is important for firms to know and understand the technology architecture needed to meet the new flexibility, agility, scalability and computational requirements.

In this paper, Satyam Kancharla, Chief Strategy Officer at Numerix, discusses what he considers to be the necessary building blocks for banks to achieve the right technology infrastructure to enable successful FRTB implementation. He further emphasizes that having the capacity to meet the new requirements and adapt to the influences driving them can present significant opportunities.

This white paper examines:

• The challenges over tasked and often band-aided legacy technology faces when trying to meet the demands of FRTB
• New technology transforming banking and risk management
• The building blocks to achieve the right technology infrastructure to enable successful FRTB implementation
• How banks can go beyond meeting regulatory demands to realize opportunity from new technology architecture

Author Biography

Satyam Kancharla, Chief Strategy Officer & Senior Vice President, Client Solutions Group, Numerix LLC

Mr. Kancharla, as Chief Strategy Officer and Senior Vice President, is responsible for corporate strategy and currently heads the Client Solutions Group at Numerix. This group is responsible for Product Management, Financial Engineering and Business Analysis. Prior to this, he has served in various roles in Quantitative Software Development, Financial Engineering and Client Services at Numerix. Before transferring to Numerix in New York City, he was the CTO for Numerix Japan LLC in Tokyo, heading the Pre-Sales and Financial Engineering teams for Asia.

Prior to joining Numerix in 2003, Mr. Kancharla also worked with Merrill Lynch and GE Capital in Quantitative Finance and Product Development roles.
He holds an MBA degree from New York University’s Stern School of Business, an MSc degree in Applied Statistics and Informatics from Indian Institute of Technology, Bombay and a BSc in Mathematics and Computers from the University of Mumbai.