Sell-Side Risk Management Technology 2015

<p>Risk management systems for sell-side institutions cover a range of capabilities across different&nbsp;categories of risk such as liquidity risk, market risk, credit risk and operational risk. They are required&nbsp;to support a broad range of asset classes, as well as a variety of risk analytics including both pre-deal&nbsp;and post-trade analytics. Sell-side risk management involves front, middle and back office operations.</p>

<p>This report, while taking into account recent developments in the enterprise risk management&nbsp;environment, focuses on aspects of risk management that are relevant to the capital markets trading&nbsp;concerns of the sell-side. Given the diversity and nature of solutions and tools available, Chartis has&nbsp;concentrated on capabilities particularly relevant to sell-side risk management. These include:</p>

<ul>
<li>Collateral optimization</li>
<li>Pre-deal analytics and limits management</li>
<li>Post trade margin simulation</li>
<li>Market risk</li>
<li>Liquidity risk</li>
<li>Credit/counterparty risk</li>
<li>Front-office and Middle-office integration</li>
<li>Data management</li>
<li>Use of high-performance hardware</li>
<li>Data visualization and reporting</li>
</ul>

<p>We have purposefully excluded operational risk, GRC and financial crime from this analysis. These&nbsp;aspects of risk management are very important for mission critical risk technology for the sell-side but&nbsp;are covered in detail in other Chartis reports.</p>

<p>Regulatory pressure and scarcity of capital, coupled with advances in technology, have raised demand&nbsp;for systems able to carry out risk management under tight time constraints. High performance systems&nbsp;are essential to meet current and future core sell-side requirements.</p>

<p>This research report provides an overview of the developing trends toward risk management for the&nbsp;sell-side. We examine what this means in practice for financial institutions (FIs). We look both to&nbsp;current and anticipated demand and, on the supply side, consider technology that responds to this&nbsp;demand.</p>

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• Topics
• Analytics
• Data Management
• HPC/Calculation/Processing
• Financial Risk
• Risk & Data Technologies