Market risk management product of the year: SS&C Algorithmics

SS&C Algorithmics’ commitment to delivering innovative solutions, combined with its deep understanding of client requirements and regulatory frameworks, have enabled the company to win Market risk management product of the year at the 2023 Markets Technology Awards. With continued investment in product development and support, SS&C Algorithmics is well positioned to help banks navigate the complex and dynamic market risk landscape.

SS&C Algorithmics’ market risk solution provides compliance with current market risk regulations while supporting migration to the upcoming market risk regulatory framework, the Fundamental Review of the Trading Book (FRTB). The solution includes support for the standardised and internal models approaches, with many clients achieving internal model approval using the solution across different jurisdictions. SS&C Algorithmics’ market risk and FRTB solutions share the same framework, promoting consistency on data, pricing models, analytics and orchestration.

The solution provides a modern core, and open and scalable technology that enhances data management, flexibility and performance. It offers an advanced level of modelling flexibility and versatility for pricing and scenario generation, supporting more than 300 products with pre-configured models. Over the past 12 months, SS&C Algorithmics has also made significant investments in response to the ongoing transition away from Libor. The company’s curve construction framework supports simultaneous bootstrapping of Libor, overnight indexed swaps and new risk-free rates, while supporting automated fallback approaches to support central counterparty conversions and updated pricing approaches.

Several application programming interfaces are available for users to extend pricing, scenario and aggregation analytics, while the business orchestration framework is extended to promote further automation in business cases for both market and FRTB solutions. Several other features differentiate the platform, including a scalable enterprise-class environment, a user-friendly experience and a range of advanced risk analytics. 

In response to the changing market risk landscape, SS&C Algorithmics has invested in flexibility on modelling inflation, energy and fixed-income products. As well as the regulatory framework and client requirements, the company’s road map is driven by market and economic situations. Given the extreme volatility of the market and increasing inflation and yields, SS&C Algorithmics has addressed the use of fat-tail distributions in scenario models and introduced advanced stress-testing capabilities, including historical replication scenarios, conditional scenarios, and environmental, social and governance and climate risk-related scenarios. 

 

Judges said:

• “Comprehensive market risk systems, firmly established in the industry.” 
• “Good to see how SS&C has delivered for clients responding to the changed environment.”
• “Innovations focused on cloudification, which should provide a future-proof market risk platform.”  

 

Theodoros Stampoulis, director and product manager, analytics and market risk, SS&C Algorithmics, says:

“SS&C Algorithmics is honoured to win this award, which re-establishes SS&C Algorithmics’ market risk solution as the leader in this space. This recognition reflects the increased evolution of the solution across data management, analytics, reporting and automation. Regulatory compliance, innovation and best-in-class support are also key elements of our success in a very competitive market. Finally, the various deployment options – both cloud and on-premises – offer significant benefits to clients.”

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