Given current market practices around counterparty risk regulation, xVA management, funding and accounting, Helaba, one of the leading German banks, decided it needed to enhance its counterparty risk infrastructure for their OTC derivatives business. To support this initiative the bank wanted to pair their existing risk and core trading infrastructure with a modern, enterprise-wide XVA solution. The ability for senior management to get a comprehensive view of the bank's counterparty risk was one of the key priorities.
To remain ahead of market developments and regulatory requirements including EMIR and IFRS13 (CVA), AFD looked to complement their existing infrastructure with a single front-to-risk solution that combined high-performance technology with best-of-breed functionality. Limited by their incumbent systems, AFD required a core trading and portfolio management solution (PMS) that could provide a single view of risk, consistent analytics, and calculations to support central clearing.
The client is one of the largest financial institutions in Asia Pacific. It operates across multiple countries, serving over 10 million banking, consumer and wealth management customers. They wanted to establish a CVA desk along with the necessary infrastructure to support their Credit, Rates and FX business globally. To do this they required an accurate and sophisticated solution that would allow them to price CVA on trades immediately.