FRTB product of the year: ActiveViam

In this dynamic market risk landscape, ActiveViam has emerged as the standout winner of the FRTB product of the year award at the Markets Technology Awards 2024. The company’s Atoti FRTB solution, an extension of the Atoti Server platform, surpasses the demands presented by the Fundamental Review of the Trading Book (FRTB). 

ActiveViam’s FRTB solution takes a holistic approach, offering clients essential formulas to navigate the complexities of FRTB calculations. 

Judges said:

• “Great configuration.”
• “Proven viability.”
• “I particularly like the ability to assess IMA eligibility at the desk level.”

This preconfigured solution strikes the balance between out-of-the-box functionality and adaptability. It ensures clients can seamlessly align with the standardised approach (SA) or the internal models approach (IMA), providing the flexibility banks need.

Atoti FRTB goes beyond regulatory compliance, ensuring users can subject specific trading desks to IMA eligibility tests, incorporate portfolios into IMA desks for assessment and monitor risks in real time. This capability allows firms to analyse the effects of market movements promptly and make necessary adjustments for a proactive approach to risk mitigation. This not only enables a deeper understanding of market implications, but also ensures data quality and accuracy in real-time, providing a competitive advantage through swift responses to dynamic scenarios. 

Atoti FRTB offers robust what-if scenario capabilities. It manipulates raw data under hypothetical assumptions with minimal disruption, allowing users to observe the effects on official metrics across multiple layers of granularity. This feature addresses the substantial data volumes demanded by FRTB regulations while accommodating additional data generated by exploratory scenarios. The result is a tool that facilitates in-depth examination of trading activities and their potential repercussions on risk capital consumption.

More than 15 international banks – including HSBC, Societe Generale, Natixis, ING and ScotiaBank – have implemented Atoti FRTB for SA and IMA methodologies. This broad adoption and Atoti FRTB’s certification as an International Swaps and Derivatives Association vendor for FRTB since June 2021 demonstrate its viability and capacity to fulfil stringent regulatory requirements.

The analytical capabilities of Atoti FRTB enable detailed analysis and explanation by enabling users to drill down to the trade level. This ensures transparency and clarity in the assessment of risks. It facilitates analysis for day-to-day comparisons to identify outliers and explain changes within datasets. The scenario simulation and optimisation capabilities enable what-if analysis for strategic decision-making and risk mitigation. 

Atoti FRTB maintains the integrity of existing valuation models and risk solutions. Atoti Server harnesses data directly from current sources, with faster and more cost-effective integration. This approach eliminates the need for significant modifications, providing a streamlined and efficient path to compliance.

Over the past 12 months, Atoti FRTB has undergone significant advancements to better cater to clients’ needs. Support for internal models through software-as-a-service, expanded multi-jurisdictional support, a partnership with Google Cloud for global availability and a customer-centric approach through a bimonthly FRTB user group all showcase a commitment to innovation, adaptability and client satisfaction.

Colleen Cosgrove, chief solutions officer at ActiveViam, says: 

“We’re immensely proud to be recognised as FRTB product of the year at the Markets Technology Awards. This accolade celebrates our relentless dedication to providing industry-leading solutions tailored to meet the evolving demands of market risk. Atoti FRTB represents a pinnacle in our commitment to empowering financial institutions with comprehensive, adaptable and real-time risk management capabilities. This award underscores our unwavering focus on innovation, regulatory compliance and, most importantly, delivering tangible value to our esteemed clients across the global financial landscape.”

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