Stricter regulatory capital rules and accounting developments are forcing firms to adopt new analytics solutions that are more efficient than their predecessors. TriOptima, a NEX Group company, claims this year’s best sell-side analytics product award, thanks to triCalculate, designed to provide trade valuations and counterparty credit risk analytics as a web-based service.
XVA is a term that reflects the valuation adjustments made to the price of an over-the-counter (OTC) derivative transaction to accurately value the costs of the contract. TriCalculate XVA and trade valuation services include data mapping and setup, maintenance, quality assurance, market data, training and support.
While some software solutions can take a minimum of 12 months to be fully deployed, triCalculate can be up and running in less than 30 days, thanks to it being entirely web-based. Its advanced graphics processing unit (GPU)-based technology and probability matrix methodology enable it to speed up XVA calculations to seconds or minutes rather than hours, according to the Stockhom-based firm.
As XVA calculations are often required by multiple business units within a financial institution, triCalculate enables those departments to use the solution to produce results more efficiently without needing additional infrastructure. Banks often require these calculations for accounting reporting purposes, although not many have the time or internal resources to develop robust valuation models. In some cases, they are forced to rely on manual spreadsheet-based methods that expose them to inconsistencies, which in turn can lead to operational risks. Using triCalculate, banks can automate their valuation calculations and feed the results into various reporting mechanisms.
Sell-side firms are able to eliminate the complexity of XVAs by securely sending their data to triCalculate and interacting with its engine through a web interface, or by connecting existing systems directly through an application programming interface (API). “Within the evolving market landscape, the most effective solutions provide XVA analytics as a flexible service rather than static software installation,” says Thomas Griffiths, co-CEO at triCalculate. Griffiths adds that triCalculate is relatively easy to implement with rapid onboarding and no additional hardware or software requirements.
TriOptima delivers and implements functionality updates “in the background” so that its clients are always working from the most current version without having to deal with time-consuming and potentially expensive new installations or upgrades. The web-based triCalculate service eliminates the need for sell-side clients to purchase large numbers of servers and incorporates standard models that can be used by all industry participants.
Blackstone's CTO talks about the firm's cloud strategy and looks at some of the lessons learned as they've migrated systems to the cloud.Subscribe to Weekly Wrap emails