FCTM signs up for Summit risk management software

First Chicago Tokio Marine Financial Products, a joint venture between Bank One of the US and Japan's Tokio Marine and Fire Insurance, has signed up to use New York-based risk management systems provider Summit Systems’ front-to-back modular software solution. The new system, which has reached implementation stage, will support FCTM's risk management activities.

The system will include support for listed futures, over-the-counter options and other derivatives, plus credit instruments. The risk management analytics available through the system include parametric delta/gamma/vega value-at-risk and optimised Monte Carlo VAR.

Summit said the deal would be renewable every three to four years, but refused to provide the financial terms of the contract. Summit - a subsidiary of UK software vendor Misys - has a number of existing bank clients, including Credit Suisse First Boston, Deutsche Bank and Dutch financial group ING.Summit completed the installation of a back-office system for the World Bank's treasury in early July. The system, an extension of earlier work by Summit for the multilateral lending organisation, supported interest rate derivatives, futures and listed options, among other products. Tony Ferreira, the World Bank's director of treasury operations, said Summit's straight-through processing capabilities in automated confirmation generation and dispatch, settlement messaging and payment processing, combined with real-time trade position viewers and position accounting, were the most attractive components of the system.