Misys launches new SA-CCR module on Misys FusionRisk to assist banks achieve Basel-compliant derivatives counterparty standards

Published 
  • Misys packaged solution will help banks comply with Basel Committee’s SA-CCR, the Standard Approach for Counterparty Credit Risk (BCBS 279)

LONDON – Misys, the leading financial software company, announced today that it has launched a new packaged solution to help banks comply with the Basel Committee’s Standardised Approach for Counterparty Credit Risk (SA-CCR).

Misys FusionRisk SA-CCR is a real-time solution that will help banks achieve a consistent and compliant risk policy for derivative counterparty exposures. This is accomplished by allowing a bank to apply the same risk methodology across capital reporting and internal risk limits management. It will hold all the supervisory data required by the regulation, mapping trade information and capturing all asset classes, right netting sets, collateral and margin agreements.

Driven out of the Basel Committee, SA-CCR is a regulation focused on counterparty credit risk exposure associated with OTC derivatives, exchange-traded derivatives and long or dated settlement transactions. The regulator has asked the framework to be changed by 1st January 2017, when SA-CCR will replace the Current Exposure Method (CEM) and the standardised method (SM) in the Basel capital adequacy framework. The regulation will require more data inputs, calculation challenges and granular drill-downs across business lines than before.

The Misys solution has been built with these changes in mind, and with an easy and quick implementation process. The solution is built on the SA-CCR (BCBS 279) specifications and can run exposures in parallel with old and new calculation methods for a smooth transition to the new regulations. Risk managers can analyse and drill down to different levels of exposure and limits in an easy to use and flexible dashboard. The SA-CCR Exposure at Default (EaD) computations are available for all further accounting and regulatory computations such as Risk Weighted Assets, IFRS 13, Credit Value Adjustments (CVA) and others. With full transparency of the calculation methodologies and flexibility to adapt to local regulations, banks are in control at all times and can centrally modify regulatory parameters should the need arise.

Thierry Truche, Global Head of Product Management, Misys FusionRisk, adds: “Regulators are pressing banks to cope urgently with the new Counterparty Credit Risk methodologies. Speed of implementation is critical, consistency with limit management vital and flexibility will be key as further modifications of the methodologies at country level have to be expected. Our solution provides a holistic risk management packaged framework to optimise the allocation of the capital and can be easily deployed to meet the deadline.”

Misys FusionRisk offers a rapid route to compliance, with a unique solution that combines credit, market and liquidity risk and supports assessment of regulatory capital, calculation of liquidity coverage ratios and stress testing.

Most recent episodes

40th Annual New York Cash Exchange: What Can Treasurers Expect?

Ahead of the 40th annual New York Cash Exchange, two of TMANY’s distinguished board members, David Miller and Timothy T. Hesler, CTP, provide TMI CEO, Robin Page, with a quickfire rundown of what attendees can expect from this year’s conference. Our guests share their aspirations for the event,...

00:00

Expectation-Beating Inflation Prints Ratchet Up Pressure on Monetary Policy

Welcome to the third edition of Liquidity Link Live, your exclusive market analysis provided by Northern Trust Asset Management, one of the world’s largest cash managers. Tune in each month to discover the very latest insights on the UK, Eurozone and US markets. This edition was recorded on the 9th May...

04:48

Making the Sustainable Transition: A Roadmap to ESG in Treasury

Over the last 18 months, Societe Generale has experienced a steady increase in requests from their corporate clients to integrate ESG features in treasury management.  Louis-David Rouyer, Philippe Pougeard, and Emmanuelle Petelle (Societe Generale) provide TMI’s Eleanor Hill with a whistlestop run...

22:24

Lift Off for Fed Rate Rises

Welcome to the latest edition of Liquidity Link Live, your exclusive market analysis provided by Northern Trust Asset Management, one of the world’s largest cash managers. Tune in each month to discover the very latest insights on the UK, Eurozone and US markets. This edition was recorded on the 5th of...

04:58

Treasury in 2022 and Beyond

Industry experts Bob Stark (Kyriba) and Sebastian di Paola (PwC) join TMI’s Editor, Eleanor Hill, to explore the very latest treasury trends – and to discuss how smart treasurers can get ahead of the game by ...

43:21

How BearingPoint Harnessed Data-Driven Forecasting with CashAnalytics and SAP

Listen back to our recent forecasting masterclass, where Group Treasurer Eveline Stam, and Conor Deegan (CashAnalytics) provided TMI’s Eleanor Hill with a comprehensive overview of how consultancy firm BearingPoint achieved company-wide cash forecasting nirvana by combining specialist solutions from...

37:14

The 3 T’s of The Future: Tech, Treasury, and Transformation

Over the past two years, an increasingly dynamic environment has not only accelerated technology development – from quantum computing to blockchain technology, and even the metaverse – but also technology adoption, bridging colleagues and breaking down silos in a remote work world. In this podcast,...

44:02

Monetary Policy Continues to Drive Markets as Ukraine Invasion Weighs on March Meetings

Welcome to the second edition of Liquidity Link Live, your exclusive market analysis provided by Northern Trust Asset Management, one of the world’s largest cash managers. Tune in each month to discover the very latest insights on the UK, Eurozone and US markets. This edition was recorded on the 3rd of...

05:25

Tax Spotlight: How the OECD’s Two-Pillar Solution Impacts Treasury

Aaron Lee and Joseph Lee (DBS Bank) join TMI’s Eleanor Hill to discuss how the OECD’s Two-Pillar Solution aims to address the tax challenges arising from the digitalisation of the economy. Ahead of the 2023 implementation date multinational corporates will have much to consider around these reforms....

24:00

FX Connections: Bringing Transparency to Cross-Currency Payments

Cross-border activity is growing at a remarkable rate, making FX payments a hot topic for treasurers across the globe.  In this TreasuryCast episode, Eleanor Hill asks Daniela Eder and Gibran Maqsood (Barclays Corporate Banking) to provide their key action points around FX payments in 2022. Our guests...

21:00