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

QuIC Partners with Solum to Enhance CVA Solution

Subscribe to our newsletter

Markit, a global financial information services company, today announced that QuIC Financial Technologies (QuIC) has agreed to license calculation methodologies developed by Solum Financial Partners to enhance the calculation speed of its credit value adjustment (CVA) solution for counterparty risk managers. CVA quantifies the credit risk inherent in OTC derivative transactions and is integral to pricing, risk management and accounting processes within financial institutions.

The recent credit crisis triggered a significant shift in the financial industry from passive to active counterparty credit risk management, which requires frequent and accurate computation of CVA and its sensitivities. QuIC’s CVA solution helps banks to improve trade pricing and to hedge volatility affecting their CVA better. Credit value adjustment was a source of significant losses during the credit crisis.

Incorporating Solum’s proprietary calculation methodology extends QuIC’s speed advantage in performing the billions of calculations per second required to gauge counterparty risk at the portfolio level and will help financial institutions run CVA analyses even more efficiently and frequently, without additional or specialised hardware.

Paul Jones, head of product management at QuIC, said: “Working with Solum will enable QuIC to extend our lead in CVA calculation and further help our clients develop an integrated view of market and credit risk. With the faster speed we now offer, even clients with the largest portfolios don’t need to limit the number of CVA sensitivities they can run each day.”

Vincent Dahinden, founder and CEO of Solum, said: “We are pleased to partner with QuIC to make the CVA process more accessible to financial institutions worldwide. The ability to efficiently incorporate CVA calculations is a critical component for firms committed to comprehensive portfolio risk management.”

QuIC’s CVA solution delivers flexible, near real-time pricing and incremental exposure, sensitivity analysis, stress testing and P&L attribution of large, complex portfolios. The solution covers equity, credit and interest rate derivatives, foreign exchange and commodities. Solum is a major capital markets consultancy specialising in risk management and CVA.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: The challenges and potential of data marketplaces

Data is the lifeblood of capital markets. It is also a valuable commodity providing financial institutions with additional insight when gathered in an internal data marketplace, or packaged and sold externally to other institutions. While the theory is sound, the practice of setting up a data marketplace can be challenging. Internally, vast amounts of data...

BLOG

Predictions 2023: A Year of Evolution and Adaptation

By Ludovic Blanquet, Chief Strategy & Transformation Officer, Xceptor. As the curtains begin to draw on 2022, financial institutions are anxiously navigating the challenges imposed by war in Ukraine, rampant inflation, and looming recessions. If it was hoped the diminishing threat of Covid would offer some respite, that hope was short-lived. However, advancements were made...

EVENT

RegTech Summit New York

Now in its 6th year, the RegTech Summit in New York will bring together the regtech ecosystem to explore how the North American capital markets financial industry can leverage technology to drive innovation, cut costs and support regulatory change.

GUIDE

Regulatory Data Handbook 2022/2023 – Tenth Edition

Welcome to the tenth edition of A-Team Group’s Regulatory Data Handbook, a publication that has tracked new regulations, amendments, implementation and data management requirements as regulatory change has impacted global capital markets participants over the past 10 years. This edition of the handbook includes new regulations and highlights some of the major regulatory interventions challenging...