NEW YORK, December 5, 2001– SunGard Trading and Risk Systems, an operating group of SunGard (NYSE: SDS), today announced that Komercni Bank, a Czech Republic commercial bank with assets in excess of $10.5 billion, has selected its Infinity and BancWare solutions for trading, risk and asset/liability management. Infinity will support interest rate and foreign exchange derivatives trading, including structured products, and provide analytical tools for managing the market risks associated with that trading activity. BancWare will be used to manage interest rate risk across multiple currencies on Komercni’s balance sheet, and provide data management and advanced balance sheet simulation.
Vaclav Spirhanzl, head of the project management division at Komercni, said that the bank selected Infinity because it required a system that would enable it to more effectively respond to market volatility by implementing greater risk control without restricting its business goals.
"Our current trading and risk management solution was unable to sufficiently support our existing and expected activities in the trading area," said Mr. Spirhanzi. "In order to maintain and develop our business in a controlled fashion, we sought a system that could robustly handle our growing activity in sophisticated derivative products. We selected Infinity because it is a proven trading and risk management solution. It was also important that we partner with a vendor that can grow with our business. The industry experience and expertise of SunGard, and the depth and breadth of its solutions ensures us that we are entering into a long-term partnership with a strong, trusted provider."
Komercni will also use an integrated suite of BancWare solutions to support the modeling of its corporate and retail balance sheets. Using BancWare, Komercni will manage liquidity, funding requirements and interest rate risk on non-trading positions by modeling both on- and off-balance sheet instruments. BancWare will also facilitate management of earnings volatility arising from the effects of interest rate movements.
BancWare Insight will collect, clean and synthesize the bank's transaction level data, ensuring quality and consistency of data feeds. BancWare Convergence will then model the data under a number of different interest rate scenarios providing comprehensive income simulation and market values in multiple currencies. Advanced balance sheet modeling will be achieved through the application of a term structure model.
Thomas Fuchs, head of asset/liability management at Komercni, said, "We selected BancWare because it is a proven solution amongst Czech banks for rapid implementation and robust modeling. As we undergo privatization, we also required a proven system for regulatory reporting."