Fundamental Review of the Trading Book, or FRTB, was introduced following the 2008 global financial crisis as a boundary between the trading book and the banking book. This shifts risk measurement from value at risk to a wider view of market liquidity risk, requiring banks to calculate more complex and risk-sensitive models than in the past.
As banks develop their processes and systems in preparation for the looming FRTB start date, they need to consider the cost and administrative burden of developing tools in-house. Adding to the complexity, individual jurisdictions are responsible for transposing the non-binding international agreement into law. This means that banks with international operations need a solution that supports their compliance needs across multiple jurisdictions.
Choosing a solution with Cloud capabilities reduces costs and time to value, freeing up resources by outsourcing both hardware as well as technical and functional expertise.
SS&C Algorithmics FRTB on Cloud is a complete end-to-end solution that features industry-leading analytics for pricing models and FRTB metrics. It has an intuitive aggregation and reporting interface that allows for interactive what-if analysis. It covers a wide range of local FRTB rule implementations, as well as multiple jurisdiction support for banks with international operations.
The fully managed pre-built software as a service (SaaS) solution for the Standardized Approach is available on SS&C’s Private Cloud.
The SaaS solution provides many benefits to clients including:
Cost savings by shifting on-premises hardware to a cloud data center and offloading maintenance, upgrades and server repair.
A best practice standard implementation.
Ongoing support from SS&C’s team of experts.
Disaster recovery with 24x7 monitoring.
Advanced security measures.
Scalability that allows clients to access increased resources through on-demand provisioning.
TheSS&C Algorithmics FRTB on Cloudsolution is also available for deployment via other major cloud providers including Microsoft Azure, Amazon Web Services and Google Cloud Platform.