The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

Desjardins Cleans Up Entity Data, Deploys SunGard Adaptiv Credit Risk

Share article

Desjardins Group has signed a three-year deal with CounterpartyLink for the provision of legal entity data as part of a larger counterparty and issuer risk project that will also see Desjardins – the biggest co-operative financial group in Canada – implement SunGard Adaptiv Credit Risk.

CounterpartyLink’s data will first be used by Desjardins to ensure a single, unique legal entity identifier is assigned across all functional departments of the organisation, the vendor says. This data is then being integrated into SunGard Adaptiv. Once this is in production CounterpartyLink’s data will be available to Desjardin’s front, middle and back offices across its multiple business lines active in the financial markets.

Pierre Beaudoin, senior advisor, market and insurance risk management at Desjardins, says the firm’s aim through its counterparty and issuer risk project is to better “monitor risk at the issuer group level”. This requires it to upgrade its processes and the quality of its data in order to be able to do the kind of control and monitoring that until now it has been doing on a monthly basis, on a daily basis. “We have data flowing in from the broker side, the treasury side, the fund management side and the insurance side of our business – all the trading entities of the Desjardins Group, with all the usual problems of different naming conventions and identifiers,” he says. “We needed a big clean-up and we decided not to do it internally.”

During its review of the marketplace Desjardins collected sample data from several different vendors, Beaudoin says. “We analysed the format and the data provided, and compared it to our needs,” he adds. “We also interviewed the vendors over the phone. After that analysis we decided to go with CounterpartyLink, mainly because of its file format and the flexibility of it. The data fields suited our needs, and we were also impressed by its willingness to enhance its database to cover all our legal entities, since we are based in Quebec and Canada.”

CounterpartyLink provides 94 fields of validated data for each entity, covering name and address details, corporate hierarchy, registration and regulator details and a variety of other standard identifiers, including Swift BIC codes and CounterpartyLink’s own proprietary identifier.

This year, Desjardins is putting in production daily monitoring using the CounterpartyLink data “provided in one shot”, Beaudoin says. “We are not putting in place a daily process where we send data to and receive data from CounterpartyLink. We do plan to send another batch to them, but we will do that on an ad hoc basis. So for the first phase, we are doing a clean-up and then we will maintain the data internally until we go back again to CounterpartyLink.”

The next phase of Desjardins’ consolidated monitoring of counterparty and issuer risk will be in production a year from now, he continues. “We are using risk monitoring software we have purchased – SunGard Adaptiv Credit Risk – and are implementing this year. This will enable us to put in place a more robust process, the frequency of which has yet to be defined, whether monthly or weekly (it is less likely to be daily).”

The aim is to frequently check for new entities, Beaudoin adds. “We want to automate as much as possible the addition of new entities against which we have counterparty risk. We will be sending that data to and receiving it from CounterpartyLink, so in the second phase we will be making more frequent use of CounterpartyLink’s services.”

Any further phases are not yet formalised, he says. “For the time being we are focusing on counterparty and issuer risk. Down the road it is possible there will be processes we want to look at, covering a wider spread of products such as loans and deposits,” he concludes.

Related content

WEBINAR

Recorded Webinar: Adopting Entity Data Hierarchies to Address Holistic Risk Management

Firms across the board are struggling to gain a comprehensive view of their counterparty risk. In the wake of the Credit Crisis, regulators have increased their focus on pushing firms to not only better understand risk exposure, but also be able to provide evidence of the analysis they use to create their view of risk....

BLOG

DMS US Virtual Goes Live with a Practitioner Innovation Keynote and Real-Time Q&As

A-Team Group’s Data Management Summit USA Virtual kicked off today with a hugely insightful live practitioner innovation keynote followed by two live, and lively, Q&A sessions packed with audience questions and answered by the day’s expert keynote and panel speakers. Andrew Delaney, president and chief content officer at A-Team, hosted today’s live sessions of the...

EVENT

RegTech Summit Virtual

Regtech Summit Virtual will explore how business and operating models have adapted post COVID and how RegTech can provide agile and enhanced compliance for managing an evolving risk and compliance landscape. As the dust settles, we will look at the outlook for the global RegTech industry, where Regulators are focusing as they get back to business, and deep dive into global regulatory priorities for the rest of the year and into 2021.

GUIDE

Enterprise Data Management, 2010 Edition

The global regulatory community has become increasingly aware of the data management challenge within financial institutions, as it struggles with its own challenge of better tracking systemic risk across financial markets. The US regulator in particular is seemingly keen to kick off a standardisation process and also wants the regulatory community to begin collecting additional...