Financial Engineering Associates, Inc. (FEA) announced today that FEA Partner Ascent Financial Technologies and Banco BBA have completed the first customization of FEA value-at-risk (VaR) technology for the Brazilian financial markets. Ascent now offers FEAâs VaR software programs with direct support for major Brazilian financial instruments.
Ascent built its customized FEA VaR system, including MakeVCÂ®, VaRworksÂ® and VarlibÃ, in close cooperation with Banco BBA Creditanstalt S.A. (BBA), the largest independent wholesale bank in Brazil http://www.bba.com.br.
"The main objectives of our work at BBA were to integrate FEAâs Varlib with the firmâs other systems, and to satisfy BBAÂ´s need for a VaR analysis tool that incorporates market risk factors specific to Brazil," Ascent Financial Technologies CEO Alberto Suen said. "BBA chose the FEA value-at-risk software solution precisely because the FEA technology is at the frontier of the Risk Management field. Also, BBA was attracted by the power and flexibility of the FEA VaR system, and the fact that it is the only system licensed to use the VaRdeltaÂ® patent."
Enio BonafÃ© MendonÃ§a de Souza, Director of Risk Management at BBA and one of the most experienced professionals in risk management in Brazil, said: "With the FEA VaRdelta technology BBA traders can rapidly choose candidate operations that optimize our hedging strategies by fully exposing the VaR and cashflow impacts of any transaction. The FEA VaR system gives us very fast performance; It allows intra-day VaR estimates, robust stress testing, and multiple reporting options."
Suen adds that Ascentâs customized FEA VaR system will deliver a competitive advantage to Brazil-based banking organizations. "In 2002, Brazilâs new national clearing system, the Brazilian Payment System, will require banks to inform the Central Bank of their cash position and transactions electronically. Firms using Ascentâs FEA VaR solution will have a fully integrated risk management system that supports and simplifies their new on-line reporting requirements."
FEA President and Chief Scientist, Dr. Mark Garman applauds Ascentâs and Banco BBAÂ´s work with the FEA VaR technologies. "The FEA Partner program is designed to benefit companies like Ascent. Using FEA software technology, Ascent has developed a valuable product that gains strength and credibility from its foundation in FEAâs proven risk management methodologies."