Mika Mustakallio, CEO, MORS Software, comments: “Last week we witnessed a rogue trader executing a massive €4,9bn fraud on one of the biggest high street banks in France. London City experts commented that in the current volatile climate, fortunes can be won and lost in the time it takes to make a cup of tea. However, with the right technology in place this does not need to happen.”
MORS Software enables all trading systems to connect to one control system, MORS, which in turn checks positions and risks in real-time as they develop. MORS enables the independent risk control team to see exactly what is happening in each trading system immediately instead of at the end of the day. Risk control can then analyse the reasonability of different positions as they occur, also against their counterparts.
Mustakallio continues: “This Société Générale case is a true but unfortunate reality of the importance the independent risk control function plays in every bank and the need for risk control to be carried out intra-day - connected to all trading systems in real-time. The end of day manual control procedure is no longer enough.”