London - Misys is supporting the banking community as it prepares for Basel's Fundamental Review of the Trading Book (FRTB). The regulation, which overhauls the market risk capital charge calculation, has significant ramifications which must be addressed to ensure banks comply with new rules.
Following consultation around the demands on banks under FRTB, Misys is readying FusionCapital Risk - FRTB. It will offer financial institutions compliance as part of a phased transformation of broader capital markets IT infrastructure, including:
1) A pre-packaged reporting solution to comply with the SA.
2) Front-to-risk coherence via a shared pricing engine with analytics and aggregation.
3) A solution adaptable to evolving regulations and changing market demands.
4) The FRTB solution makes use of Misys FusionCapital's shared pricing, valuation and UI components, which are designed to incorporate wider transformative activities in the future.
The new market risk capital charge is a step change from the former Basel 2.5 for both the SA and IMA. It is forcing banks to review every aspect of the current market risk calculation. Banks will need to prepare for changes to a multitude of processes, including environments and reporting capabilities, as well as an increase in required computation power for the IMA.