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Lawmakers have targeted key financial practices for reform, radically altering the expectations and behavior of industry participants. The combination of the Dodd-Frank Act, European Markets Infrastructure Regulation (EMIR), MiFID ll and Basel lll signify the biggest regulatory change in decades. These reforms have resulted in major change to how financial products are traded, settled, collateralized and reported, resulting in deep and ongoing structural changes to the markets. Read More

In the last few years, the financial markets have undergone dramatic change. While some of this is down to natural evolution, much of the change can be directly attributed to new rules introduced in the wake of the 2007 crisis. Regulators, legislators and central bank governors have been determined to avert another bubble bursting or an unexpected event that could threaten markets.  Read More

"Our services are designed to take advantage of the power and flexibility of modern virtualized data centers, on premises and cloud hosted. The service layer is interoperable, meaning that customers can consume risk, reporting, workflow, and other services from any client that support the SOAP protocol. By providing interoperable services, customers can leverage risk, reporting, and other functionality in the way that works best for them". Read More

"An important objective for risk frameworks supporting multi-strategy funds is that they work well for single strategy risk analysis while also enabling coherent fund-level risk aggregation. We have found that a scenario-centric approach provides an effective and flexible foundation for doing so". Read More

TABB Group principal and senior analyst Paul Rowady invited Avadhut Naik, Product Manager, Quantifi to discuss desiloing and defragmentation; primarily aimed at large, complex dealing banks and financial intermediaries on the sell-side. Read More

In the previous two blogs we introduced FVA and described the ongoing industry debate on how to treat FVA, whether as a part of risk-neutral pricing or as an extra cost of a trade. Interest in this topic was recently renewed, particularly in light of the JPMorgan's (JPM) Q4 2013 earnings report on January 14th 2014, which for the first time included FVA. Read More

The simplest and most common circumstance when FVA arises is when a bank has an unsecured trade with a counterparty and hedges it with a secured trade - for example with a CCP. In this case if the value of the trade is positive, the value of the hedge is negative. To cover the margin call the bank has to borrow cash at its funding rate of Libor+s where ‘s’ is its funding spread.  Read More

The implementation of new regulations including Dodd-Frank, MiFID II, EMIR and Basel III is significantly increasing the cost of capital and forcing banks to re-evaluate the economics of their OTC trading businesses. Understanding trade profitability becomes critical with banks now pricing all the components of a trade including the model value using the appropriate discounting curve, the Credit Valuation Adjustment, the Cost of Regulatory Capital and most recently the Funding Valuation Adjustment. Read More

The Agence Française de Développement (French Agency for Development - AFD) is a public development finance institution that has been working to fight poverty and foster economic growth in developing countries and the French Overseas Provinces for seventy years. It executes the policy defined by the French Government. AFD is present on four continents where it has an international network of seventy agencies and representation offices. Read More

Buy-Side firms are witnessing a rapidly changing operating environment and need to not only comply with regulations but also adapt to a new marketplace. Quantifi’s solution for buy-side analytics is an integrated Portfolio Management Systems. As well as integrating all regulatory and industry practices, Quantifi applies the latest technology innovations to provide new levels of usability, flexibility, and ease of integration. This translates into dramatically lower time to market, total cost of ownership and significant improvements in operational efficiency. Read More