The Fundamental Review of the Trading Book (FRTB) is expected to have a huge impact on capital, modelling methodologies and IT complexity. While the basic goals and ideas of FRTB are simple, it differs materially from the existing Market Risk regulations. It is therefore likely that the new rules will substantially change both the operating and business models of a large number of industry players.
“To mitigate risk and enhance transparency, we needed a more dynamic system that can provide consistent analytics and a single view of xVA risk across our entire portfolio of vanilla and exotic instruments.” Matthias Rapp, Head of Trading, Helaba
Finding from a recent Quantifi survey reveals banks are at varying levels of preparedness to deal with the impact of FRTB. Forward thinking firms are assessing the parameters of FRTB and making decisions on desk structure, technology and methodologies.
In June of 2016, Microsoft announced the release of .NET Core. Mark Traudt, CTO, Quantifi outlines the client benefits of .NET Core. These benefits include reduced cost, greater flexibility and scalability in deployment, increased transparency, and greater innovation.
“Where appropriate, adoption of next generation technology infrastructures and emerging innovations enable front office, risk and finance functions to achieve capital-efficient options and drive operational gains” Cubillas Ding, Research Director, Celent