"We are responding to the investor market's and institutional stakeholders'
increasing demands for better and more transparent risk management," said Eric Banfield, vice president and market risk analyst at Northern Trust.
"Algorithmics solutions have accelerated our efforts to move beyond satisfying regulatory requirements with regard to market risk. Given the flexibility of the system, we are confident we will be able to handle any new instruments or products we believe will benefit our clients. Also, while enabling valuation and risk measurement, the portfolio hierarchy model that Algorithmics helped us implement provides a clear illustration of the actual hierarchy structure of our portfolio across all offices and all currencies in which we deal."
Northern Trust also employs Algo Credit for pre-deal limits management to support intra-day and 24x7 trading operations. Algo Credit Limits provides a powerful risk-calculation, aggregation, and consolidation framework for comprehensive exposure and limit management for intra-day FX and money-market activity on over 50 GT-Win live dealer workstations worldwide.
The solution also captures automated broker trades through the Northern Trust FX Passport, FX Caleo and Reuters Electronic Broker services. Algo Credit provides Northern Trust with "what-if" pre-deal limit checking as well as real-time availability under exposure, settlement and country-risk limits.
"We think the Algorithmics team dealt expertly with all the details of our company and our systems," said Banfield. "They were experts with the solutions as well as the risk management concepts. They helped us think about the uses and benefits of the output, including satisfying our management's requirement for a better picture of risk."
"As a long-term client of Algorithmics, Northern Trust is an excellent example of how innovative financial institutions add value through best-practice enterprise risk management," said Michael Zerbs, President and Chief Operating Officer at Algorithmics. "Northern Trust has a dynamic, nuanced, and evolving vision for risk management encompassing effective practical tools required for the real-time risk measurement as well as the value-added benefits of building risk into the business measurement and planning process."