Like any high performance, revenue generating online business, electronic trading is exposed to technology and operational risk - the chance that critical systems will malfunction, leading to financial loss and/or reputational damage. Recent events remind us that such losses can quickly become very serious, and have led to a renewed focus on safety and reliability in the sector.
This industry white paper delves into the technology and operational risk that trading firms ...
February 2013- This industry briefing - sponsored by SAP - provides insight and analysis on how financial markets firms see Big Data approaches and technologies being leveraged for trading and risk applications. Respondents demonstrated a good understanding of how Big Data approaches might be leveraged across a number of key trading and risk applications, with substantial commonality of thought in some cases.
The Capital Markets Guide takes an in-depth look at proﬁt-driving and
proﬁt-draining activities within ﬁnancial organizations. For 2012, ﬁrms will be exploiting the potential of Big Data and limiting their exposure to risk.
And that's not all that's in store for them. Updates to Basel III and deadlines for Dodd-Frank are causing wholesale changes to business processes and technology.
The ultimate goal is to make smarter trades at the speed ...
The recovery from the global recession has become especially precarious due to the
Eurozone sovereign debt crisis and fiscal tightening in the western world, and as a result of which volatility in financial markets has risen sharply. Under these circumstances, it has become imperative for banks to strengthen their risk management frameworks so that they can meet both the current and impending wave of challenges successfully.
This report, based on a survey of 46 ...
How long can a business afford to wait for information about position and exposure risk? That is the question for financial institutions in 2012.
Following the financial crisis and increased regulatory pressure, the market has seen a big turning point in risk management. Market volatility and a recognition that counterparty risk is very real have resulted in risk management systems starting to be viewed as strategic assets. Investments have been focused on enabling a ...
Counterparty risk has long been a source of concern for risk managers. However, the financial crisis brought new urgency to counterparty risk management for risk practitioners, regulators and financial firms alike, as exposure to collapsing giants left the industry reeling. That urgency has been punctuated by the global economy's current struggles, as firms grapple with new regulations, the European debt crisis and fears of a double-dip recession.
The failure of MF Global in ...
April 2012- This free white paper explores how IT departments at financial institutions are assuming a more proactive role in identifying technologies that can improve their risk management and bring them to the attention of risk managers and business heads.
In this technical white paper from IBM, learn how predictive analytics can be used to detect internal and external threats to your organization. You will learn how techniques including cluster analysis, anomly detection, time series analysis, social network analysis, predictive models and scoring can be used to detect suspicious activity in real-time so your orgnization can take action to minimize risk and increase positive outcomes.
As a final step, you will learn how ...
With organizations facing a multitude of threats - from the economy and financial risk to data security and insider fraud - that are increasing in number and severity, it's no suprise threat and risk mitigation a top priority for business.
The best defense is a systematic approach to reducing exposure and minimizing negative impact. You must be diligent about managing the threats you are aware of as well as the threats you have ...
The emergence of global trading is driving several important trends, including the consolidation of exchanges, a realignment of industry coalitions, and the emergence of global trading standards.
Today's firms have to adapt to this new climate, while answering continuing calls for optimization and cost reduction. These changes will continue to force companies to embrace open standards and new technologies that promise to reduce system complexity and lifetime maintenance costs while allowing them to ...
To manage reference data effectively, financial services institutions need an organized, thorough, consistent program to source, validate, and normalize data as they acquire it. To build this program, financial institutions must face these challenges:
• Sourcing data from vendors and internal systems
• Monitoring and auditing reference data quality
• Delivering data securely across applications and locations
This white paper examines these key challenges in detail. It concludes that financial organizations need ...
November 2010- Optimization is unique simply by being the mathematical discipline focused on efficiency. Along with statistics and predictive analytics, it is one of the two mathematical disciplines used most frequently in the world of business. This white paper shows how mathematical optimization provide tools that deliver significant competitive advantage for solving the most challenging problems encountered in finance, including risk management, operational cost, and product innovation.
November 2010- Over 500 structured finance market participants from 200 organizations took part in Principia's ABS industry best practices survey. The results are analyzed here with a focus on investor due diligence requirements as the market returns on a more stable footing. What are the most important aspects of satisfying due diligence requirements? How well does the industry currently perform in these areas? What are the best practices investors can adopt to address these challenges?
The Responsive Process Management (RPM) Suite from Progress Software enables a high level of operational responsiveness for communications service providers.
Faced with a need to gain a competitive advantage and create connections with customers, communications service providers require a flexible, integrated management suite that adapts to shifts in consumer interactions and market conditions in real time. Progress RPM based OSS/BSS solutions meet these challenges without the need for a massive overhaul to ...
January 2010- This paper explains the StatPro approach for measuring Liquidity Risk. The traditional problem of Liquidity Risk is that the data needed for calibrating these models is only available for liquid instruments, trading on a regular basis and for which books of bid/ask and volumes are available. For this reason the current approaches to measuring Liquidity Risk fail providing any indication for the most opaque and illiquid instruments, or where the measurement of Liquidity Risk ...
March 2010- The white paper analyzes the global economic meltdown triggered in mid 2007 in the US which soon spread to all major economies of the world. It examines the role of various parties responsible to trigger the sub-prime crisis and subsequent recession. It emphasizes the need for more transparency in rating methodologies used by credit rating agencies to rate complex mortgage backed securities traded in secondary market.
April 2010- Jeffrey Wallis, managing partner, SunGard Consulting Services, discusses how the “too big to fail” principle, driven by the interconnectedness of financial firms, could lead to an economy where a company could be “too small to succeed”.
August 2009- Changes in energy and commodity markets and regulations, increased regulatory oversight, and the behavior of a few people are compelling senior executives to mandate the strengthening of their compliance programs. This whitepaper discusses leading practices in implementing compliance organizations and tools.
Energy Risk provides the 2010 outlook of five major consultancies and experts in the energy trading and risk management arena.
Representatives from Ernst & Young, MRE Consulting, Sapient, The Structure Group and SunGard Consulting Services convened to address some of the key questions that will be affecting the markets in 2010. Topics covered include: the future of over-the-counter regulation – some of the experts are concerned about it and some less so; a discussion of the incentives ...
Your risk exposure changes every millisecond. That's why it's critical to get up to speed on real-time, enterprise-wide risk management. Effective capital and financial risk management now requires that information flows no longer be handled independently in business unit silos; they must be unified for use in front, middle and back offices to aid compliance with internal controls and regulatory demands.
Read this executive brief to learn:
• Why today's risk management practices ...
April 2009- As financial institutions search for answers to our current crisis, it is natural to be introspective about our business model, our core values, and the future of our industry. It was a shock to everyone in this business how quickly operational risk and market risk could lead to systemic risk. If there is a silver lining to this recession, it may come in the form of a commitment to address long-standing gaps in our infrastructure ...
December 2007- Financial services organizations need to support the rapidly evolving structured products they offer their clients, but the solutions available can't always keep pace with the demands of the business. Employees working in the risk and trade management market have to contend with resource-intensive, monolithic systems, and frequently resort to using spreadsheets for products that don't fit with existing trading applications.
June 2008- When III Offshore Advisors began looking for better ways to measure the risk in their credit derivatives portfolio, they looked at everything on the market. “As a hedge fund, we had a pretty sizable budget for investing in this,” said Paul Algreen, CIO at the $4 billion fixed income firm based in Boca Raton, FL. The firm looked at high end SMP servers, Data Synapse, open-source Alchemi and other options before concluding that Digipede met its ...
January 2009- Of all the technologies available to traders today, voice communications is probably the most critical during an emergency. Whether a natural disaster, terrorist threat or technology interruption, traders need to make fast decisions, cover their positions and let customers know what’s happening. Even if a firm trades electronically, voice communications becomes a critical service to support during a crisis.
February 2009- In the midst of the current market turmoil, there are initial signs that institutions will need to adapt to the following trends: transparency, risk management and diffusion. Transparency will come in the form of additional reporting requirements. Improvement to risk management will lead to a better understanding of market risk and operational controls; a popular mantra will be updated to read: “Know your client, know your counterparty better.” Despite the wave of consolidation and contraction ...
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