Helaba, one of the leading German banks with a balance sheet total of around EUR 180 billion, offers financial services to companies, banks, institutional investors and the public sector, both within Germany and internationally.
Given current market practices around counterparty risk regulation, xVA management, funding and accounting, Helaba 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 banks’ counterparty risk was one of the key priorities.
AFD looked to complement their existing infrastructure with a single front-to-risk solution that combined high-performance technology with best-of-breed functionality.
Agence Française de Développement (AFD), is an established and specialised financial institution that has been working to fight poverty and foster economic growth by financing sustainable development projects in developing countries across five continents. Regulation in the shape of Basel lll, IFRS13, MiFID2, EMIR and the introduction of central clearing has driven the need for firms to navigate the complexities associated with cleared and non-cleared portfolios - both in terms of workflows and capital efficiency.
OeKB decided that to support future business demands, they would need to replace their front-to-middle office platform with a next generation solution.
Oesterreichische Kontrollbank AG (OeKB) is a specialised institution owned by commercial banks located in Austria. OeKB’s mandate is to support the Austrian economy, offering a uniquely broad variety of services to Austria´s industry and capital market participants. With its single integrated front-to-middle solution Quantifi has revamped OeKB’s trading and risk management infrastructure, across several lines of business, to provide new levels of accuracy, usability, flexibility and integration.
Bunge was looking for an enterprise-wide credit and counterparty risk management solution to support their business across 40 countries globally.
Bunge, a leading agribusiness and food company, conducted a rigorous process to select the right system. The process involved evaluating specialist commodity risk systems, capital markets risk systems, leading credit rating agencies and internal build options. The selection process, which involved a proof-of-concept, resulted in Bunge choosing Quantifi for its expertise in quantitative analysis and system development, along with the ability to collaborate to develop a solution addressing Bunge’s specific business needs.
A cost/benefit analysis, conducted by the client, of their use of Quantifi over a 5 year period showed a projected ROI of 275% and a payback period of less than 1 year.
One of the largest asset and wealth managers in the world was looking for a single front-to-administrator solution for trading and risk management to address growth, market changes, and regulatory requirements including MiFID, EMIR, and Dodd-Frank for one of its premier funds. After a 5 month review of alternative internal and external solutions, Quantifi proved to be the clear leader, as it offered all the functionality best matching the client’s stringent requirements.
The client can now better measure the impact of CVA on their existing portfolio
The client wanted to gain a better understanding of the mechanics of CVA pricing, especially on transactions involving multiple currencies. The firm’s widening credit spread dramatically increased CVA charges levied by dealers. Therefore the client wanted more transparency and a second opinion on these CVA charges. Quantifi generated a matrix of CVA prices and then analysed the differences between its results and the dealer quotes to help the client better understand the pricing dynamics.
Quantifi seamlessly integrated with the clients complex environment
With a complex infrastructure of proprietary and third party front and back office systems, a key challenge for the client was producing timely and accurate risk reporting. Senior management within the firm required a consolidated view of risk and P&L to ensure an awareness of, and accountability for the risks taken across their multiple credit business units. To do this they required a solution that would provide a single view of exposure by taking input from the various systems.
Fast, robust and easy to implement counterparty risk & CVA solution
Having initially developed an internal credit risk management system, the client looked to Quantifi as they realised the limitation of their internal system. Their system did not have the necessary features to support their business going forward, including out of date with the latest market innovations, a lack of transparency, no ability to provide on desk incremental trade pricing and unable to model issues like wrong-way risk.
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