About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

Quantifi Survey Reveals Industry-Wide Move to Overhaul Counterparty Risk Systems

Subscribe to our newsletter

Quantifi, a leading provider of analytics, trading and risk management solutions for the global capital markets, today announced the preliminary findings of its counterparty credit risk survey. Quantifi recently participated in the Global Derivatives and Risk Management conference in Paris and surveyed a cross section of financial firms to gain insight into the various approaches and timing in implementing counterparty risk management processes.

The survey revealed:

• All respondents have or plan to implement major changes in their counterparty risk systems – 41% of respondents plan to complete major changes in 2012 or beyond.
• Nearly one out of three firms are currently implementing or evaluating vendor counterparty risk and CVA systems.
• The largest challenge within existing counterparty risk systems is data management and integration (64%). The next largest challenge is the calculation of CVA sensitivities.
• About 27% of firms actively manage and hedge CVA – 59% of firms use exposure limits and 50% use counterparty selection as their primary method for counterparty credit risk management.
• Sixty-four percent of respondents calculate CVA on new trades and 50% of these use an integrated calculator with netting and collateral.

Rohan Douglas, CEO of Quantifi, comments, “Regulatory and market changes are driving banks to overhaul how they calculate and manage counterparty credit risk. The standard is being set by the largest global banks which now actively manage counterparty risk, calculate sensitivities, and price CVA for new trades using integrated solutions based on netting and collateral agreements. Given the portfolio level scope and the analytical complexity, existing technology infrastructures have constrained many banks from achieving best practices.”

David Kelly, Head of Credit Products, Quantifi, notes, “There isn’t necessarily a ‘one size fits all’ approach to counterparty risk management due to the unique aspects of bank’s respective portfolios and supporting systems. Many firms are choosing vendor systems that already embed industry best practices and offer a faster and more cost-effective solution.”

Quantifi’s offering in this space, Quantifi Counterparty Risk, is a high-performance platform for managing counterparty credit and market risk that is flexible, scalable, rapid to implement, and intuitive to use. Incorporating high-performance, multi-factor Monte Carlo simulation, coupled with our powerful grid computing architecture, Quantifi Counterparty Risk can support even the largest most complex portfolios, including those with significant wrong-way risk or volatility. Reflecting industry best-practice, Quantifi Counterparty Risk supports calculation of CVA sensitivities and incremental deal pricing, enabling institutions to proactively manage counterparty risk and address regulatory and accounting requirements.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: An update on data standards and global identifiers

Data standards and global identifiers have been parts of capital markets’ practices for many years, and more are being developed, reviewed and shaped as the industry acknowledges their role in streamlining data management, reducing risk, improving transparency, and achieving compliance. This webinar will discuss data standards and identifiers in play, as well as those in...

BLOG

Fenergo Combines KYC and Transaction Compliance to Provide Real-Time Customer Intelligence

Fenergo has released KYC & Transaction Compliance, an offering for fintechs – and later financial institutions – that combines the company’s KYC and transaction monitoring solutions to provide a single, integrated SaaS solution that continuously monitors customer profiles and detects suspicious transaction activities, including money laundering and terrorist financing, in real time. KYC & Transaction...

EVENT

Buy AND Build: The Future of Capital Markets Technology, London

Buy AND Build: The Future of Capital Markets Technology London on September 21st at Marriott Hotel Canary Wharf London examines the latest changes and innovations in trading technology and explores how technology is being deployed to create an edge in sell side and buy side capital markets financial institutions.

GUIDE

Regulatory Data Handbook 2023 – Eleventh Edition

Welcome to the eleventh edition of A-Team Group’s Regulatory Data Handbook, a popular publication that covers new regulations in capital markets, tracks regulatory change, and provides advice on the data, data management and implementation requirements of more than 30 regulations across UK, European, US and Asia-Pacific capital markets. This edition of the handbook includes new...