As the regulatory environment evolves, the focus at many banks is on mitigating capital charges and managing the cost of changing both IT infrastructure and operating models. In order to remain competitive, firms must be able to price capital charges and risks into their trades.
The Counterparty Credit Risk (CCR)/xVA Solution Suite from IHS Markit supports regulatory capital calculations and an extensive range of pricing valuation adjustments on a single, modular platform. It allows firms to mitigate the impact of capital requirements and delivers flexible pre-trade analytics to the front office. The suite consists of the following two solutions, which can be implemented independently or as an integrated workflow:
Risk and Regulatory Capital Solution – Run calculations on large global portfolios of complex instruments with accuracy and speed
Front-Office xVA Solution – Leverage an extensive range of valuation adjustments across all asset classes and financial instruments, with the flexibility that active desks require for sensitivity analysis, hedging, stress testing and reporting
Consistent risk and pre-trade analytics – Benefit from a single, consistent view of portfolio risk and pre-trade analytics, reducing your exposure to operational risk. The CCR/xVA Solution Suite leverages a single engine to support the latest regulatory calculations (including SA-CCR and SA-CVA Capital) and front-office valuations (including CVA, DVA, FVA, MVA and KVA) across all asset classes
High performance, competitive cost – Compute Monte Carlo-based, portfolio-wide calculations in a highly efficient manner with a solution suite that has been designed from the start as a simulation engine. The suite has been built using big data technology with proven scalability to the petabyte range, giving users fast access to capital calculation and pre-trade analytics. It can be deployed on commodity hardware on premises or in the cloud – including both hosted and managed service options
Flexible, modular platform – Implement the solution suite in its entirety or mix and match its constituent solutions and modules with your existing IT systems. This flexible, modular approach enables firms to manage change, contain costs and adapt to evolving regulations
Transparency – Access risk calculation results at full granularity, including real-time drill-down and historical trend analysis. A collaborative Notebook interface enables data exploration and visualization. This level of transparency allows users to better understand the risks they face and the sources of their regulatory capital charges