NAB to keep revised system

National Australia Bank (NAB) officials have no plans to replace their currency options trading platform in light of the recent $280 million (A$360 million) foreign exchange rogue trading scandal that has enveloped the bank over the last two months, reports Risknews’ sister publication, Trading Technology Week .

However, an NAB spokesperson acknowledges that the bank has already made changes to the system to address the platform's shortcomings, and says further alterations are on the way.

NAB officials announced in mid-January that they had commissioned an independent report into the matter by PricewaterhouseCoopers (PwC). The report revealed that the options trading platform used by NAB was dubbed Horizon and was developed by an "external software company. The software company was small but had developed a foreign exchange options system at another major Australian bank," according to the PwC report. A spokesperson at Triaxia, a Sydney-based vendor, confirmed Horizon was developed by the company, but declined to provide more information.

"Issues about valuation, being able to enter and remove orders from the system, and internal deals have been addressed with some changes in the [trading] system, and some [changes in] manual processes," said the NAB spokesperson. Specifically, he said the Horizon software has already been altered so internal orders are now matched on the system. The representative declined to give further examples of changes that have been made so far.

PwC also reported that NAB officials say the bank vigorously tested Horizon at the time of implementation.

However, NAB officials were unable to locate details of the testing performed for the implementation of Horizon, according to the report. "We are therefore unable to conclude on the completeness, accuracy or appropriateness of testing the new system," said the PwC authors.

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Chartis RiskTech100® 2024

The latest iteration of the Chartis RiskTech100®, a comprehensive independent study of the world’s major players in risk and compliance technology, is acknowledged as the go-to for clear, accurate analysis of the risk technology marketplace. With its…

T+1: complacency before the storm?

This paper, created by WatersTechnology in association with Gresham Technologies, outlines what the move to T+1 (next-day settlement) of broker/dealer-executed trades in the US and Canadian markets means for buy-side and sell-side firms

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here