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’s Latest Whitepaper Explores the Challenges in Implementing a Counterparty Risk Management Process

Subscribe to our newsletter

Quantifi, a provider of analytics, trading and risk management solutions for the global capital markets, has published a whitepaper entitled ‘Challenges in Implementing a Counterparty Risk Management Process’. The paper explores the key challenges for banks in the implementation of counterparty risk management, focusing on data and technology issues, in the context of current trends and best practices.

In lieu of new regulation requirements, many banks face the challenge of consolidating their central counterparty risk groups or CVA desks across asset classes and business lines. The white paper reviews the primary challenges, which include:

• Gathering transaction and market data from many different trading systems, along with legal agreements and other reference data, causing significant and often underestimated data management issues.

• Difficulty calculating CVA and exposure metrics on an entire portfolio and incorporating all relevant risk factors.

• Expectations from traders and salespeople for near real-time performance of marginal CVA pricing of new transactions.

• Integrating internal counterparty risk management with regulatory processes.

In short, the data, technological, and operational challenges involved in implementing a counterparty risk management process can be overwhelming.

“The OTC markets are going through significant changes due to new regulations and the impending Basel III capital accord,” said David Kelly, director of credit products at Quantifi. “Many of these changes are being driven by counterparty risk concerns, either mandating or creating incentives for central clearing and imposing significantly higher capital charges for bilateral trading. In this new environment, banks are transitioning their business models and shifting decision making authority from the front office to central risk management groups, including CVA desks.”

Subscribe to our newsletter

Related content

WEBINAR

Upcoming Webinar: Hearing from the Experts: AI Governance Best Practices

9 September 2025 10:00am ET | 3:00pm London | 4:00pm CET Duration: 50 Minutes The rapid spread of artificial intelligence in the financial industry presents data teams with novel challenges. AI’s ability to harvest and utilize vast amounts of data has raised concerns about the privacy and security of sensitive proprietary data and the ethical...

BLOG

From Awareness to Execution: Closing the Regulatory Compliance Implementation Gap

By Jordan Domash, Founder and CEO, Responsiv. Even under a ‘regulation light’ administration, more than 1,400 new Federal executive orders, final rules, and proposed rules have emerged in 2025 alone. Layer on every potential state and international change, there’s a lot to sift through. Regulatory teams must then take these often-dense legal texts and quickly...

EVENT

AI in Capital Markets Summit New York

The AI in Capital Markets Summit will explore current and emerging trends in AI, the potential of Generative AI and LLMs and how AI can be applied for efficiencies and business value across a number of use cases, in the front and back office of financial institutions. The agenda will explore the risks and challenges of adopting AI and the foundational technologies and data management capabilities that underpin successful deployment.

GUIDE

AI in Capital Markets: Practical Insight for a Transforming Industry – Free Handbook

AI is no longer on the horizon – it’s embedded in the infrastructure of modern capital markets. But separating real impact from inflated promises requires a grounded, practical understanding. The AI in Capital Markets Handbook 2025 provides exactly that. Designed for data-driven professionals across the trade life-cycle, compliance, infrastructure, and strategy, this handbook goes beyond...