London, 8 September 2016 – Market and credit risk practices are being overhauled via key pieces of regulation tied to the Basel III capital framework: the fundamental review of the trading book and the standardized approach for measuring counterparty credit risk exposures. These standards include key provisions related to all types of valuation adjustment (or XVA) and data-aggregation best practices, and contribute to Basel III’s impacts on firms’ capital costs, liquidity resources, and treasury and collateral management practices. Can firms that review their operating environments and assess the technology and processes underlying risk management and reporting meet these new regulatory and market requirements?
This report examines how firms are tackling these transformational forces and building upon their current technology and data-management infrastructures. It is based on conversations with 15 market participants either at capital markets firms active in the global derivatives sector or supporting transformational activities for risk management and data management.
This 36-page Impact Report contains 19 figures and one table. Clients of Aite Group’s Institutional Securities & Investments service can download this report.