ATB Financial select Adaptiv to manage counterparty credit exposure
20 October 2011 Edmonton
Image: Shutterstock
ATB Financial (ATB) has selected SunGard’s Adaptiv Riskbox and Collateral solutions to help manage counterparty credit exposure and respond to demand from across the business for greater transparency and efficiency.
ATB has been managing the desk level risk of its derivatives book on the Adaptiv platform since 2006. As the industry becomes more sensitive to the possibility of counterparty defaults, firms are using netting and collateral to mitigate the effect of a default. Adaptiv’s newest offerings to ATB will help the firm manage counterparty credit exposure from both a collateral management and a simulation Potential Future Exposure (PFE) perspective, which helps the bank understand its potential exposure to its trading partners and proactively reduce its counterparty risk.
Implementing a flexible and integrated market, credit and collateral management solution will help the firm better manage market and credit risk measures and the associated risk mitigation processing, as well as helping it disseminate that information to numerous internal departments for increased transparency across business silos. Adaptiv is also providing improved reporting capabilities, such as trade level drill down and scenario-based measures that will help provide consistent, up-to-date and accurate information.
Peter Freilinger, treasurer at ATB, said, “We need the most robust infrastructure to support our management of counterparty credit exposure through collateral netting and PFE simulation. The expertise of SunGard’s Adaptiv team, as well as the technical and functional improvements they have made in the solution’s calculation speed and result distribution areas, showed us once again that SunGard understands both our business and what we need in order to effectively compete in today’s changing environment.”
Juerg Hunziker, president of SunGard’s Adaptiv and Front Arena business units, said, “We work closely with our customers and industry players to understand the latest market developments and develop innovative solutions to help them capitalise on change. That is why so many of our customers choose to expand their relationship with us when new technology requirements arise.”
ATB has been managing the desk level risk of its derivatives book on the Adaptiv platform since 2006. As the industry becomes more sensitive to the possibility of counterparty defaults, firms are using netting and collateral to mitigate the effect of a default. Adaptiv’s newest offerings to ATB will help the firm manage counterparty credit exposure from both a collateral management and a simulation Potential Future Exposure (PFE) perspective, which helps the bank understand its potential exposure to its trading partners and proactively reduce its counterparty risk.
Implementing a flexible and integrated market, credit and collateral management solution will help the firm better manage market and credit risk measures and the associated risk mitigation processing, as well as helping it disseminate that information to numerous internal departments for increased transparency across business silos. Adaptiv is also providing improved reporting capabilities, such as trade level drill down and scenario-based measures that will help provide consistent, up-to-date and accurate information.
Peter Freilinger, treasurer at ATB, said, “We need the most robust infrastructure to support our management of counterparty credit exposure through collateral netting and PFE simulation. The expertise of SunGard’s Adaptiv team, as well as the technical and functional improvements they have made in the solution’s calculation speed and result distribution areas, showed us once again that SunGard understands both our business and what we need in order to effectively compete in today’s changing environment.”
Juerg Hunziker, president of SunGard’s Adaptiv and Front Arena business units, said, “We work closely with our customers and industry players to understand the latest market developments and develop innovative solutions to help them capitalise on change. That is why so many of our customers choose to expand their relationship with us when new technology requirements arise.”
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
